It is what bitcoins doing with its price right now. Would your chart analysis and talk about the latest news, and if America are in fact going to be doing the digital dollar, as has been reported, we'll talk about all of that in today's video. So do stick around for that if you haven't already subscribed to the channel, please make sure you do. Thank you for finding the channel and, of course make it my notification bail. So you can be related to all of our new videos as well, so let's get into it first up, let's start by taking a quick look over at Queen 360 to see what's happening in the market overall. So, as you can see, the market is overall really deep. Green we've had some really big gains for Bitcoin and etherium and XRP litecoin as well. Over this last seven days, Bitcoin is up 24. We do actually see the prices drop a lot more than 24. During that complete collapse of the markets last week, but it does look like things – are slowly coming back to recovery and there's a good couple of reasons for that, the first article I want to bring your attention to. Is this one over on coin desk into the unknown no limit on fed money injections? Basically, the Fed over in the US have promised to basically do quantitative easing to a massive new scale and they're going to be doing it and not putting a limit on what they actually pump into the economy.
Now to some people they may be wondering well why what's the problem? If we can print more money, why can't we just print more money and give that money to people? Surely that would be a boost to the economy and it would also resolve things like poverty. Well, I'm, going to tell you but I'm, just gon na have a sip of tea from my crypto big mug. You can buy these and support the channel. If you can have, the link will be down in the description below now in the article here. You can see that they've pointed out. The Federal Reserve has pledged that they're going to be buying bonds in an unlimited quantity and also allocating 300 billion, at least three hundred billion dollars to a new emergency in program. We'Ve seen a similar thing happen here in the UK, as well, with unprecedented amounts of money being pumped into the economy in order to try and basically stave off the disaster that we're going to see following the collapse of all these industries because of the corona virus Pandemic, the idea is that, by pumping more money into the economy, lending more money to people that they're going to be able to see through to the end of this crisis, and then hopefully the economy should bounce back. The problem is that when you start to pump out more and more money, you are in fact, actually devaluing the currency and potentially causing massive inflation.
To give you a good example of this, you have to think back to how things were done before we actually had money in the system. You would actually have people bartering and swapping goods with each other, so you'd have, for example, like this little illustration here. Somebody who wanted fish would swap maybe ham for it all. You know if they had a chicken they'd, swap that for a tool that they're after and the problem of course back then was that you would only Bill. Did you trade in very small amounts, because you know you may not be able to actually bring 40 chickens review to do a trade or you may not even be able to keep 40 chickens review to do a trade and buy something that you wanted and what's To say the person selling the fish wants your chickens in exchange anyway. So of course I mean this is a very simplified version of it, but that's what things were back then people would just trade different items for other items. Well, the pitfalls of that were that you couldn't store any value in any of those items and, of course, like I said it wasn't very easy to do trading because you might not want the item that this person's offering in exchange for your goods. So what happened? Well, we switched to monetary systems and basically with those monetary systems. What you're, actually seeing when you hand over cash or pay using your card, is actually in effect an IOU.
It isn't, actually the cash that gives it the value it's. The fact that the and you give it to should be able to use that to go and trade for another good or service that they want. You know, therefore, it eliminates the two big problems with bartering. You don't have to have the item that the person with the fish wants. You could just give them the IOU which they can use to go and get the item they want from the person selling that and, of course, you resolve the issue of being able to retain the value you don't have to worry about all your value. Being your chickens and trying to somehow store chickens and hundreds of chickens or whatever, it is you're trading, because you can actually store money instead, when we do quantitative easing what we're basically doing is we're actually doubling up the IOUs that are out there without actually increasing The amount of goods or services that are actually being provided for that money, so nobody is really actually exchanging everything for those new io used to be entered into the system. What effectively that means is is that you are devaluing the services that you buy by 50. If say, for example, you double the amount of money that you pump out, so this is what quantitative easing is, and this is why printing money isn't actually a long term solution to these problems. Certainly, in the short term, it can help the economy, but it will have a long term effect and especially when it comes to global trade.
Now, of course, the advantage that the government side, the USA and UK have at the moment is that pretty much most countries are in the same situation where their economies are also tanking, so by doing quantitative easing. Hopefully, these other countries will do the same and therefore everybody will actually be in the same boat, long term, because they've all devalued their currencies and not one country will be particularly stronger than the others at the end of it. But quantitive easing does oppose that problem. That you are devaluing the currency, so bitcoin and gold and safe haven assets are the actual solution to that all should be now in the previous video. We did talk about how we sure, whether God, whether Bitcoin, was going to be seen as that safe haven asset, because it is the first time that it's actually been tested since its actual creation in 2009. And that was of course, following the last financial crash that we actually had, and it looks like that. My talking point from last week is something that others have been talking about over on Reddit as well. So you see here posted by the 420 chronicler. The coronavirus recession will be big wins. First major test Bitcoin has only ever existed within the framework of a larger government, fueled fear bubble, which is in the process of popping or deflating. If we want Bitcoin to survive, our community must not panic cell. We need to keep stacking sets, and that is true, of course, but we did see that big shake off in the market.
Just last week, when the news about the stock market's happened, we saw bitcoins price and the rest of the crypto market, plunged interestingly enough, though, after that shock sell off in the crypto market, Bitcoin has bounced back and funny enough, even though, on Friday this week just Gone again, there was some messing around from the Democrats over in the US with regards to a stimulus package. They actually caused a crash in the stock prices again on Friday. By refusing to accept that bill, which, from my understanding apparently was a bipartisan bill, that both parties had actually been working on in the first place, so don't really understand that. But the point is the market crashed on Friday because of it, but Bitcoin actually didn't this time around and as they say here on coin Telegraph, Bitcoin was designed for a financial crisis and so far it's working well and that's, because it pointed out something very interesting Here now, as I said to you guys in the video last, video gold also had a massive price drop on that Friday as well, when Bitcoin did so. What was it not Friday last week, but the week before so, gold actually had a big drop in its price and then as well and in the article here. They point out that there was actually a big drop in Gold's price at the beginning of the 2008 financial crisis. Well and in the article they are saying that we you shouldn't, be looking at it short term.
We should be looking at what Bitcoin does over a longer period of time following this crisis, and I think as well it's also worth pointing out. We have still got the Harvin coming up where the price and actually mining a bitcoins, going to jump up very dramatically. That could also increase the price of Bitcoin on the market and, despite the rest of the markets, either being in decline or stagnating. One thing I have to say, though, is that if Bitcoin gets through – and I think it will, if it gets through this crisis without completely collapsing, then it will have proven itself in one of the most tough economic situations that we could have imagined anytime soon and So I do think that if this actually happens, Bitcoin will have proven itself to actually be an asset that's worth putting money into, and at that point then it will probably be too late for us to put more money into it, because then everybody else will realize And the price will pump up higher than we were expecting and having as well is going to have an impact on that. So I am now looking at the charts for opportunities to buy into more Bitcoin. Of course, there is a bit of a difficult task for some people, because you know people aren't working right now and some some people are losing money, but definitely it's. Something to consider if you do have some savings, obviously, but make sure you are able to live and pay your bills and have food and you're safe and you're, not gon na get ill from this virus yourselves.
But if you can buy some Bitcoin, it may be that we're about to reach a critical point for the purchase of Bitcoin. Now a statement from Ito rose a CEO yani Asia. I am, I actually think I agree with you where he actually says nobody should expect. Bitcoin to necessarily go up in a short period of time, even if they announced a trillion dollar bailout. Bitcoin is not going to go up just because of that. Bitcoin is going to go up either because people who got the bailout money by Bitcoin, which is not that likely, but maybe but it's, going to go up because it has a limited supply, it's deflationary by nature and over time, its value versus commodity services and fiat Money should go up because it has a limited supply if we assume constant increase in real demand for the usage of Bitcoin, and I think that this is the sentiment that I share there. Another interesting boon for Bitcoin could come out of this situation. Not the trillion dollar bailout plan, but in fact the fact that House Democrats are proposing a digital dollar in order to basically pay out this trillion dollar package. They'Re saying perhaps a digital dollar would be a better way to do it then with cheques. So they asked considering their own crypto cryptocurrency to actually pay out this trillion dollars now, if they do that, then that will convert literally the whole of America into cryptocurrency advocates, because they're going to be using a form of cryptocurrency to actually see themselves from this crisis.
Of course, I don't think this is actually going to happen, and the reason for that is that the initial bailout plan was one that was backed by both parties and it's, only just on the friday that they decided they weren't going to back this. I can't see the republicans turning around and accepting this brand new bill that the democrats have put together without any input from the republicans. So i can't see that working a bipartisan deal is shot down, but the democrats think that their partisan deal that they put together without any input is somehow going to make it through. I don't see that happening so the digital dollar, possibly isn't, going to happen. We know that Donald Trump isn't the biggest fan of cryptocurrencies, as he said in previous tweets, so I can't see that happening. But the fact that the Democrats are actually talking about this in a positive way is actually great news, considering that it was actually Democrats who are getting most upset about Bitcoin just last year, now, let's quickly get on over to the charts and actually take a look At what bitcoins doing so, as you can see, we're on the one day chart now for Bitcoin against the US dollar over on Gemini and you'd, see here that, yes, this is the channel I'm gon na be talking about the channel again, I love talking about this Channel and we were in the channel bouncing back and forward and we had our breakout and it did look very promising.
We got all the way up to 10000, almost 11000 dollars, and then we actually got rejected at that level. And if you remember, I did point out anyway that this was turning into a head and shoulders pattern, and I think it was just as we got to about here that I said guys watch out. I think that we might be getting a head and shoulders pattern if the price comes back up to here and it better and it's rejected. Then we're gon na see an actual pullback and, of course, as you see there, we had the right shoulder popping up there and then it back down – and this is a big drop anyway – that brought us back down to these boobs now, at the top support line Of that descending channel it actually broke through, and then we had that terrible day with the stocks where the price dropped by nearly 50, then obviously the price has been incredibly volatile. Since then, however, it is important to point out that 4800 did actually work out as a good support level. During that volatility, and now you can see that, with a fresh injection of volume, the price has come back up into the actual descending channel. Now we haven't actually gone anywhere near at the top of this channel again, and I do think that moving forward, regardless of how Bitcoin does compared to the stock markets. This is actually going to be a problem that we will need to overcome, and so if we do continue to see some growth in the price – and we will of course find serious resistance and around 7800, where we go that high.
Yet I don't actually think we will not quite yet, and if I bring in this to show you this here was a band of support. As you see, we were testing that after this shoulder and we then during that day broke completely through it. It should have been a very strong band of support. It didn't, quite it didn't hold up when the markets really struggled well. That band of support is now going to be a band of resistance, and we can see here that already we have touched into that band of resistance twice and volume is starting to drop off today and as well it's worth pointing out on the stochastic our psyche. We are actually now overbought, and so we may see the price range here. Certainly if we see this indicator range, then that could mean that we're gon na head up and actually test this resistance level a little bit more properly. But I do think that we've, this being so strong and then with the descending channels, actual resistance line being up here at the top of this band. We will probably see rejection here and a head back down now, if Bitcoin is going to make it through. This actual financial crisis, then I do expect that this channel may actually be what kicks back in and we'll see the price actually bounce between five thousand five hundred and seven thousand eight hundred dollars. If that fails, then the price will head back down to four thousand.
Eight hundred – and that would be quite a critical level if it breaks below that. Then I think that 3400 is a very possible target in the long run. I also want to point out that we have got on the 50 day and 200 day moving average. What looks like it's going to be a death cross, and I said to you last week that is a possibility, but I was hoping that more volume and more price movement would keep that from coming back down so dramatically. But it looks like it's about to happen that usually means that the bottom is going to be soon. So we'll probably see the price head back down again, but I do think that comparing it to the rest of the markets, looking at how it actually played out on Friday when we had that bad news about the stimulus bill not being passed through well, actually, Bitcoin Is actually doing pretty well and so for those of you who have got Bitcoin at the moment. I think that we could probably pretty see the price range for a few days test this resistance level here and it will probably get rejected. It'Ll, be this bearish trending support level that we're going to be looking for and keeping an eye on over the next few weeks. China have already made apparently a recovery from this incident and they've done that in just a couple of months. So I think the rest of the world should hopefully head towards the end of this crisis before the end of the summer.
The last thing I want to quickly show you here, though, is the fear and greed index. So one of my favorite indicators out there we haven't looked at it for a little while, but as you can see, we are in extreme fear. Right now and yesterday we were at 10 and it's been pretty much like this for the last couple of weeks and as you can see here, that this greed, this fear and greed index, has shown fear now, ranging between 14 dhe 8 over the last week and A bit so I do think that we're, probably gon na see it continue along here for a little while longer remember when we do see extreme fear in the market. It'S. Usually these moments, where the best buying opportunities are just around the corner so I'm going to keep an eye on this as soon as we start moving out of extreme fear, then I think that that is an indicator that we're heading back towards some more bullish momentum. Although I don't think that we're gon na have a bull run anytime soon, I think we are gon na have to wait this crisis to actually come to an end before we can actually see any real bullish momentum in the markets. Now. I really hope that this video is helpful but, most importantly, I hope that you guys are staying safe and staying well and I imagine most of you are going to be watching Netflix a lot of Netflix or playing lots of really cool games.
So I know I've been taking advantage of the situation myself, so please do comment down below what you're up to in this current lockdown situation, and I will catch you again in my next video on Thursday until then stay safe and as always, it's, not financial advice.