BlackRock Bought $665 Million of Bitcoin. Price Is Still Falling.

$665 million have flown into the Bitcoin ETF IBIT over the last 48 hours. But can this prevent Bitcoin from going through a major correction down to $69,000? In today's video, we're going to be answering exactly that question. So, without much further ado, let's go ahead and dive right on into it. Bitcoin is currently attempting to get back up above and hold above the May the 6th high here at approximately $82,800. Bitcoin fell beneath this level over the course of the month of October and we have been stuck beneath it and we've tried to get above it multiple times but failed. As you can see, we did see a very powerful movement in the upward direction in the accumulation of Bitcoin by the Black Rockck IBIT ETF having $665 million of inflows yesterday. Whereas Fidelity had $83.6 $6 million worth of outflows and Gayscale had $54.9 million worth of outflows for a total cumulative inflow of $526 million. Could this signal that the institutions believe that there is some kind of upswing on the near-term horizon for Bitcoin? Or does this mean that Bitcoin or is actually this not strong enough to cause Bitcoin to go into a major rally? You see, there are several different confluences that are of interest to me. Number one, if we look at a Fibonacci retracement of this entire uptrend, you will see that Bitcoin's golden pocket on this uptrend is currently sitting right around 68 to $69,000. And if we draw a horizontal level at $69,000 and look back, what we'll see is that that is the exact all-time high that was set here on November the 10th. But that's not the only reason that that level is of interest. If we draw a ray connecting these two levels right here, then what we will see is that a drop back down to $69,000, if it were to happen soon, would also bring us back down to this uptrend. Now, this uptrend, if we were to drop back down here in a reasonable time frame, maybe sometime towards the end of November, we would actually probably be holding significantly higher than that. But, as you can see, that gives us significant interest at this zone and this zone right here. Can Bitcoin drop back down to 0.5 or maybe 618? Somewhere in this zone makes a lot of sense to me. This is what the ETFs are fighting against. Essentially, if we do not see the ETFs present enough strength, enough bullishness to push Bitcoin to the upside through this level of resistance at $83,000, then the most likely outcome is the Bitcoin is going to fall back down to either this uptrending level of support or this flat level of support right here at $69,000. And it's interesting because this actually lines up very closely with what we saw take place at the beginning of the last bull market. At the beginning of the last bull market, if we draw a Fibonacci right here off of this entire rally, you can see that Bitcoin perfectly fell back down to the 618 Fibonacci level before blasting off and rallying about 52%. That movement actually dropped Bitcoin right back down to the previous all-time high, two bull markets in the past before that, just the same way as our current market is doing, pointing at December of 2017's all-time high. So this is the exact same pattern forming on both charts. And so it would make a lot of sense if Bitcoin were to go through a similar smaller correction. You could also argue that Bitcoin is going through a Fibonacci retracement right here and you could pull off of this high. See, this is one way that we could look at this. And then what you'll find is that the 618 Fibonacci level in that case is pointing at the uptrend at about $72,000. And once again, that would actually reflect back on uh dated all-time high metrics of about the 69K region and also the high that was set here in March of 2024. So either way you draw the Fibonacci one way or the other. What is likely is that Bitcoin is going to have some kind of correction back down to the low70s. That could be about a $10,000 drop. That is of course unless we see these ETFs and the accumulation of Bitcoin start coming back in a very powerful way in which case Bitcoin would likely go through a movement to the upside. What appears to be happening to me however is that Bitcoin does seem to be moving through an exhaustion. You can see we have our ADX or average directional index down here is pointing at about 21 which means that the overall strength of this uptrend has mostly lost its power and Bitcoin has now shifted directions into a sideways movement which is likely going to move into a new downtrend. So the overall likelihood is that Bitcoin is going to move down here. So what's the application for you guys? Well, before I tell you exactly how I think you should play this, I do want to encourage you on where to play this. Make sure if you have not already to sign up for Right Choice Capital with the link in the description box down below because when you sign up, you'll be getting access to cryptocurrency, stocks, gold, silver, and all kinds of other alternative assets that you can invest in. And you'll get a $100 funding bonus whenever you sign up with our link. All right, but what's the application here? If you're an investor and you see Bitcoin drop back down to 72 to $75,000, there is every reason under the sun to go into a into an investment position there. I believe that that is the kind of territory where we would be able to take out fantastic investments, get great entries on Bitcoin between 72 and $75,000. On the other hand, if you were a trader, I would definitely have a bias in favor of shorting opportunities right now as Bitcoin seems to be in a predominant downtrend. And it does seem that that the overall um the overall bias for the next month or so is likely going to be bearish. So, I do think your short trades are going to be more likely to actually turn a profit over the course of the next few months. If you did enjoy today's video, make sure that you hit that like button and subscribe to the channel. Subscribe for more for more trading and more investing content. My name has been Jeff McAfee and I'll see you guys in the next video. Peace.