Hey YouTube: what's, going on Chris here, wan na bring y'all an update today, a Bitcoin right now, we're sitting at eight thousand sixty dollars, we're down one point: seven one percent. What I want to do was continue to look at this green neckline that we were talking about in the last video, as I was on here with you, and what we were talking about was a potential back test of that neckline a lot of times when you Break out of the neckline, you got about a fifty percent chance that you'll actually back test that try to find support off it and then make your next move and that's what happened for Bitcoin here? What we're gon na do today is look at the bounce that we're having off this neckline and where it may go. So if you guys get some from these videos, like subscribed, hit that notification bell happy Saturday and all you guys today bear with me. I got a sore throat today, so I'm gon na do the best that I can for him and try to make this a quicker one here, having some trouble talking so we'll get into it, so guys what we were looking at here – and this is on the 4 hour chart after we had this huge dump. Here we had an inverted Head, amp Shoulders, and this was on the 4 hour. So you can see the left shoulder. You can see the head, then you can see the right shoulder and what we would also want to pay attention to.
Is this trendline right here? This is the trend line. This is our uptrend line in the short term that we want to continue now what we were looking at was this green neckline, and when we broke out of this green neckline, you can see we actually got out of this downtrend channel that we've been in for About six months and we're, looking at all this on the log scale right now, you guys what I tried to do with this downtrend. If i zoom back out, I was trying to get as many touches as possible. Whenever you draw a trend lines, you want to try to get as many touches as possible with that trend line. So you can see up here. We add there's three, four, five, six, so about seven touches there. So this definitely is a significant downtrend line here and then we had three four five, six, seven eight. So we had about eight touches to the downside here. So this is definitely a pure true downtrend channel that we've been in and we're trying to break out from it right now and that's the whole purpose of what we're looking at here. So we ended up breaking up out of it. Then we had these wicks. So this is where the Bears jumped in and you can see. We came all the way back to that green neckline and we tested it and from that area we also got support off our 50 moving average here on the four hours, but from their volume step back in and we pushed back up now the problem that I See here is this push traditionally, we should have got over top of this high that we had here at around eighty four hundred dollars, but we could be doing, is just building that strength, so we pushed up.
It looks like we're back testing this line again if we can find support there and set a higher low than this previous 78 7700. This neckline that we had here, then this could be our high or low that helps us finally push up now. If we are to start getting over top of this, this downtrend line acts as support. I wouldn't want to look up first to about 8400. We need to get over top of this high. Then it be up around that 9400 and the reason I say that is because we've dumped so hard and so fast and aggressively to the downside here, a lot of times you can make that up on the backside. That happens a lot for us in the cryptocurrency space, but it's gon na be important for us guys to set a higher low. If we start dropping back down through this neckline, then we're gon na start to get in some trouble here. What we want to see is this white trend line hold and these higher lows that we put in at around 6400. Then we put it in around 6800 and then if we did fall down – and here guys, we'd really want to see this white trend line be supported. If not, there then we'd start looking at the bottom of this channel, but we don't want to drop back into the bottom of this channel after we've been trading at the top, because we spent so much time here, just floating in the middle of this channel.
Fighting back and forth over that 0.618 fibonacci level, and I can actually show you that guys I want to do that. Quick will step back here remember this is all on the 4 hour chart and what we're gon na look at we're gon na go from our swing low, all the way down here of around 3100, and that was to start 2019. So we'll go from our swing low, all the way up to our swing high because we're looking at this retracement here and guys I'm gon na throw this in another color for you just so, you can see we'll even put it in yellow here, but this was Our 0.618 right here, he's zoom zoom over for you a little bit okay, so that was at 70 100 dollars right here, but we fought back and forth with this for over a month we were going up above it we were dropping down below it and we Finally, got back up above it so that's. Why I'm saying guys this neckline at that seventy eight hundred dollars or so really needs to hold, because we don't want to start dropping back again and testing that 0.618. We finally got back up above it and traditionally, if you can hold up above it, you'll have runs from the 0.618 up to the 0.382, which could put us up around that area again that's. Ninety five hundred ninety six hundred dollar range is what we'd be looking at so after that here guys.
I just want to look at a couple indicators with you on the for our here. The first one we're gon na go into is our relative strength index and I actually just wanted to pull this up for us, so we can take a look at it kind of treat it like a line graph. So what I would draw first, when I'm, looking at the RSI, I would draw this trendline right here. This is the trendline. Also that's gon na need to be supported, guys our resistance level is gon na be up around 81. So that shows you how high and overextended we can get on the four hours. You know we've been up as high as 85 there just recently, but this is what we need to have continue or these higher lows coming in and where it's 56 right now. So we have plenty of room to continue to make a move to the upside if the whales are gon na step in and if we're gon na find some support here off this downtrend line that we're back testing right now, but that's. What I want to bring to you guys, I just want to make it a quick one here, really pay attention to this. Downtrend channel pay attention to that neckline that I have we're looking at that inverse Head amp Shoulders, the inverse Head! Amp Shoulders came after six months, so it definitely should be significant a lot of times. That is the bottoming pattern there and that's what we need to see.
We need to find that bottom after being a downtrend for over six months and if we can find it here, continue to find support and then start making that next leg up. We really could run the 9400 pretty fast. But for me guys just be very careful. You know have those tight stop losses and, if you're playing this right now, I'm still out of the market I'm, just waiting to see what we continuously end up doing here, I want to catch it guys once we're, making those higher highs and higher lows, and we Have confidence in those that they're gon na continue to come in so that's, where I'm just more patient been very patient in this market? Like I said guys, you don't want to buy false breakouts anything like that. This markets extreme to both the upside, the downside and you really have to protect yourself. Capital preservation is the number one thing before making profits or anything think about it. Like troops, you want to send your troops out. You want to capture as many other soldiers as you can and then bring them back without losing any troops and then add to that and just keep getting bigger and bigger and bigger that's. What you're trying to do protect your capital at all cost guys that's. What I can tell you, so if you get some from this, like subscribe, hit that notification buh god bless each and every one of you have a wonderful Saturday night guys and take care