Bitcoin Price Dump Explained! It's Not What You Th

Today in crypto, the price of Bitcoin took a massive fat just steaming. Jump man. What the heck happened? I'm going to share the three reasons that Bitcoin is tanking today and just what the charts are showing us. And why in spite of the the short term pain that I'm still very bullish long term on Bitcoin and make sure to stick around to the end as well.

To find out who won the cool wallet S hardware giveaway. This is where you subscribe for all of the hottest and the latest happening in crypto land. By the way, if you are new to crypto and you're still trying to just wrap your head around all of the crazy that goes on in crypto and even just the basics like how to buy Bitcoin, how to send

Bitcoin, how to store Bitcoin, how to mine Bitcoin or even just what the heck Bitcoin is then check out my beginner course called crypto currency explained. It will take you from absolute zero to knowing the basics of crypto so that you can confidently make your first steps in to crypto. There's a link down below where you can learn more. So let's turn over to the charts

first. It has been a brutal day for Bitcoin. Really the markets globally as a whole Bitcoin just sunk massively. Dumping around 13% in the last few hours. Savage Bitcoin absolutely savage Bitcoin has been having a damn tough time breaking that resistance at the 9,150 dollar level and staying above it. Which looking back has really proven to be a tricky zone for Bitcoin over the last few

months. Our next significant zone of support is around $7,650. So do keep that. Time to find if we keep falling, but that being said, basically every relevant trend line has at this point been broken for Bitcoin and that's 200 day moving average. Oh, that is a long way away at this point. Now if the price continues like this on the real possibility of even seeing Bitcoin

move back into a death cross just before the having the MACD on the daily is looking quite bearish at the point. The moment it had been looking like we might be moving towards a more bullish crossover for the MACD, but the market has rejected that quite firmly. Now on the weekly the MACD is closing in on a bearish cross as well. So that's not super awesome

as the longer term trend looks. And it looks like we just got confirmation of a head and shoulders on the daily as well. Now this in case you are not aware is a bearish chart pattern and could send the price of Bitcoin much much lower than we are currently seeing possibly even down to the lows of late last year. Tread lightly out there guys. It is

very stormy weather in crypto land. I of course remain as always long-term bullish on Bitcoin but short term we might it be in for some pain. And of course this chance to accumulate Bitcoin at lower prices. Always welcome. So thank you, Wales. Thank you. Now that's just the technicals but I want to actually look past that to see which is what is going on out there.

Why is the price of Bitcoin taking so damn hard? Well a big suspected reason is that the plus token scam seems to have deposited around 13,000 Bitcoin to a mixer according to reports from blockchain research firm. Ergo that is around $170 million in Bitcoin. Now the long term effect of the plus token scam man has been some crazy stuff. Essentially we have this giant super scam

whale out there just continually unloading huge amounts of Bitcoin after every decent move up that we get. The good news is that they should be running short on their Bitcoin. The bad news is they're probably not out of Bitcoin yet. Now in total the scam is thought to have netted 180,000 Bitcoin. Now a lot of that has already been sold but it is hard to track

exactly how much is aware since the scammers have transferred the Bitcoin more than 24,000 times using more than 71,000 different addresses. And that's old data now. So it's probably much more than that by this point. And the use of mixers has made it incredibly hard. To keep tabs on where all the plus token Bitcoin is going. The scammers are thought to potentially have tens of thousands

of Bitcoin still left in their possession. So anyway, it's not a coincidence that the scammers moved 13,000 Bitcoin and then the price of Bitcoin dumped the way that it did. The operators of the scam have been selling on and off really every few weeks since August of last year. It is important to note too that the rate of selling has declined quite significantly in recent months.

But sadly it is not over yet. And while in the big picture of the daily crypto market volume 13,000 Bitcoin may not seem like a totally insane amount. But it is definitely significant since the scammers they just unloaded as quickly as possible when they make these decisions to sell. Now that's some slowly sold over time. That wouldn't have such a negative market impact. But this short

term pain that they're causing, it is very definitive in the way that they're selling their Bitcoin. Long term though, we're still all good. We're still all good. Now of course that is just one piece of the Bitcoin puzzle today. The Bitcoin fear index is down at around 33, which is definitely not good. Not as low as it can go. Still have lower to go on the

fear index. But this is all happening as global markets continue to just have massive hits based on fears around that Mexican beer theme. And the oil markets in particular, they took a big upset today. I mean seriously, if you think that 13% drop for Bitcoin was brutal, oil opened at a 30% loss today. That's crazy. It's not just oil. Markets are just getting crushed across the

board in the US. The 10 year treasury yields on pace to hit a record all time low of 0.5% more rate cuts by the federal reserve are a near certainty. And the market is already starting to price those in more and more. The word recession just keeps getting floated around, which means that it's coming. And to add to the fun of the beer crisis, it seems

that Saudi Arabia has just decided to start a massive oil price for right is the global economies on the brink. Thanks Saudi Arabia. Appreciate that. They're preparing to flood the markets in order to crush Russian and American oil producers, which while doing that will also crush economies all around the world that depend on oil exports. We're talking Africa. We're talking South America. We're talking producers in

Southeast Asia. Sure, it's going to get cheaper to buy a liter of petrol at the pumps, but no one is going anywhere due to the fears of the growing pandemic. Good times, cheap oil and nowhere to go. Now I bring all of that up just to really underline that it's not just Bitcoin that's getting hit at the moment, but that there is a massive global economic

event unfolding right before our eyes. And that is like learning at way worse before it starts getting better. Obviously, I don't hope for that. I'm just looking at this is what's happening. So that is something you need to factor in to your Bitcoin calculations when thinking about the markets these days. And the final piece of the puzzle is the Bitcoin miners. Now the soon to pass

Bitcoin having is making something of a perfect storm situation in a bad way. For miners in China who are in dire need of more powerful rigs to be profitable post having, but the Mexican beer crisis has made supply shortage of miners much more acute than they were already. The man is already super high demand remains high, but they can't get their hands on them. Now of

course, that's just putting more financial pressure on miners. Now this is all particularly due to the massive quarantine that we see happening across China right now. We're finding rig manufacturers like Beijing based bit main and Shen Zen based micro BT. They have been unable to ship new equipment to mining farms across China and across the world. And there's also a very big shipping delay right now

of the seven nanometer chips from Taiwan based chip manufacturers. Crazy. So what we are looking at is if the price of Bitcoin stays flat, or if it drops. So if the price is higher than the price of Bitcoin, then mining will become increasingly less profitable for a wide range of miners. Likely putting terminal pressure on a lot of smaller mining operations, miners who are unable to

upgrade in time, they're going to be put out of business. While some may try to hold their Bitcoin until after the having, those who are trying desperately right now to stay afloat as the price drops and they can't get that new hardware, Bitcoin trying to keep their farms running. Now this will likely mean that a farther concentration of mining power is going to happen since only

companies like bit main are going to be able to remain competitive in a situation like this, especially as the hash rate continues to hit new all time highs and the difficulty of mining Bitcoin continues to move up as well. The network itself is going to be a huge risk. But the network itself is stronger than ever and it's continuing to grow stronger. The same cannot be

said for a lot of smaller mining farms. Anyway. In spite of the generally not good feeling in the markets right now, I just want to reiterate, I remain a long term Bitcoin bull. If you ignore this temporary price action that we're seeing, and you look at the fundamentals, then you will quickly see that Bitcoin in the wider crypto market, markets overall, they are still kicking butt.

Just check out this story from two days ago. A French commerce court has classified Bitcoin as currency during a recent trial. The court decided to qualify Bitcoin as a fungible interchangeable asset that is not individualizable just like fiat money. Now this was ruled as part of an ongoing dispute between an exchange of funds. The court actually had a sit down to address the exact legal nature

of Bitcoin. Now the scope of this particular decision in France is quite considerable, because it essentially allows Bitcoin to be treated like money or other financial instruments as well in France. And thus this opens up the door at a legal level. For things like Bitcoin lending or Bitcoin repo transactions. Now these kinds of legal precedents, they are super important. So obviously very impactful to see this

happening. And this announcement from France. It really just tops off what has been. Just an amazing few weeks for Bitcoin and for cryptocurrencies. In the past two weeks, we have had important pro crypto rulings out of the market. Germany, where crypto was officially recognized. India, where we saw the Supreme Court shoot down the RBI Fiat ban so that all people across India, all 1.3 billion people

can now go and buy crypto. Australia had an important announcement where crypto was accepted as security in a court case in South Korea. They just passed a new pro crypto bill. Now to go back to the earlier topic of price, don't get shaken out. Look at what is happening. Open your eyes. Open your eyes. Filter out the noise. Play the long game. The Bitcoin having is

closer and closer by the day. We are on the verge of the next super cycle for crypto. The crisis won't last forever. They never do zoom out. Nothing has changed in the fundamentals of Bitcoin or of the entire crypto economy. The government is still totally dysfunctional. Inflation continues. Rate cuts are heading towards negative territory. Basically everyone is going to be in a state of emergency. The

economy is on the brink. Buy and hold Bitcoin. That is all. And chill. Don't forget the chill in part. Stacks at the second part. Got chill guys. Okay. And finally for today, the winners of the cool wallet S giveaway. So let's start off with Twitter. We had 150 entries. Let's pop that into our random number generator. And the number is 32 who is Andrea Agres. Congratulations

on Dreia. And then over on Facebook, we had 61 entries in total. So who is it going to be number 34? And that is Jeffrey Miller. Congratulations, Jeffrey. Congratulations to both the winners. And of course a massive thank you to everyone who participated in this giveaway. I will be doing another giveaway soon. We got lots more wallets down here to give away. So those are all

coming up. So stay tuned for those next time as we done on YouTube. So we YouTube exclusive giveaway. Now your question for today. What do you think about the price of Bitcoin? Why is it taking so hard? Is it about any of the reasons that I gave here today? Or is it something else completely that I've totally missed? I would love to know your thoughts on

the topic down below in the comment section. Stay strong out there guys. Price actions only temporary. Hope you have an awesome day in spite of the red markets out there, everyone. Thank you for watching today's video. As always, I massively, massively appreciate your time coming over here. Watching these videos. Listen to this dude talk about cryptocurrencies on the internet. Long live the blockchain. And be South

to next time. Bye.