*critical* for crypto

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for more information hey everyone meet

kevin here let's talk about the

cryptocurrency market and something that

i believe is a bullish

and that is why i've been buying the dip

like crazy in crypto i'm going to talk

about multiple different coins that i've

been buying as well in this video of

course if you're in the stocks and

psychology of money group you already

know because i send out alerts every

time i buy or sell something but anyway

let's first look at a little bit of just

some basic ta some patterns that i'm

seeing then i want to talk some crypto

updates and some other thoughts that i

have so let's just get right into this

comprehensive update first it is worth

noting that remember

and i know this looks like there are a

lot of lines going on here i know i know

this seems crazy here let's just remove

the lines for a moment remember when we

fell to that low 28 000 level it really

came because of liquidations that we had

in may which interestingly if you go to

may and you look at tech stocks this is

when you had peak fear

in tech stocks as well before some of

the recent pain that we've been seeing

in tech stocks and we know that we've

been seeing the beta uh with with

bitcoin aligned more closely with tech

stocks which basically means and when

tech stocks go down crypto's likely to

go down when tech stocks go up crypto's

likely to go up we're seeing that

alignment more and more

it used to be that crypto was a really

great diversifier uh uh and would

frequently do the opposite of what the

stock market has been doing uh but that

has fallen apart we already know that

but as we had this peak fear over here

in may we quickly crashed right through

our support levels if we draw these here

the 47 000 support level which we've

frequently bounced off over here

which is actually where we sit right now

we crashed right through that to get

down to that uh the supports down just

under 30 000 right look at what we have

happening here now we've got this

liquidation pane that brought us down to

about forty two thousand we quickly

rebounded to the next level of support

and this is where we've been sitting

right here at forty seven thousand this

is where we've been dancing back and

forth in my opinion unless for some

reason we continue to see pain in the

stock market especially with tech stocks

leading to some folks

going to their crypto to rob the crypto

piggy bank to go buy deals and tech

stocks i believe we could end up being

stable around the support

i think it's going to take a lot of

negativity in the stock market and the

markets in general a lot of additional

fear for us to break below this 47 000

now we did briefly break below this 47

000 today when we had a substantial

amount of fear this morning what i want

you to do is take a look at arc and then

compare the pain that we had this

morning in bitcoin arc this morning fell

to below 90 dollars now it's

substantially recovered we opened up in

the negative now we're up four point two

four percent you're seeing the same

thing with amc you're seeing the same

thing with a lot of stocks we're going

we're turning that risk on again at the

same exact time as we saw the arc pain

and the tech pain this morning during my

market open live stream look at this

folks

the price of bitcoin fell i ended my

live stream at about 7 10 and i said

folks now i'm gonna go do some shopping

and send some alerts to the people in

the stocks and psychology of money group

what did i do folks i

bought myself some crypto uh and now we

quickly head back headed back to support

i bought btc about soul and i bought dot

right

there in fact i sent my notification at

7 15 which was right there

it's pretty good that's pretty good in

fact in case you don't believe me i can

literally show you that notification

right there look at that btc.saul added

32k each let's go

uh so i've been buying the dip on

kryptos here lately but my point is

that

we're seeing a little bit of a recovery

in tech but we had a lot of pain this

morning in tech and despite a lot of

pain and tech this morning we didn't

that substantially and for that long

fall under this uh this level of support

that we have here this channel of

support that we've been dancing in now

after the fed meeting we had a little

bit of excitement we kind of ran above

uh the support lines which we quickly

pulled back to that's fine but to me the

more we keep rubber banding back to this

and the harder it is to actually get

that liquidation pain to drive kryptos

down the more in my opinion the pain

that we see as we said in this channel

the more it's by the dip opportunity for

me

so uh you know a lot of folks got mad at

me because i sold a lot i sold all of my

crypto with the exception about 40 000

in an axi team i sold everything when we

were right around 58 000 uh 500 and

that's because the signals that we're

seeing implied we got more pain ahead we

got that i don't know that we're going

to have enough pain to actually push

down to the 37 level and that's why i'm

buying now if obviously we go down to 4

to 37 000 i'm gonna buy down there as

well don't get me wrong but right now i

don't i don't personally see those

catalysts and i could be wrong so don't

sue me bro but in my opinion these are

the times where crypto is a lot more

interesting for me to add to especially

since i'm a big bull for the year of

2022 for crypto but folks there are some

important things that we have to

consider and it's beyond the christmas

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folks listen to this if you are upside

down on some of your crypto i want to

make this clear this is not tax advice

i'm not your cpa so i cannot give you

guaranteed information here but listen

folks

if you're upside down on some crypto

there is technically until december 31st

i believe don't sue me bro until the end

of the year

no

wash sale rule for crypto

this means that let's say you bought

bitcoin at 60 000

if you sold your bitcoin right now

and then rebought it

you could take that 12 000

loss and re-buy it so it's kind of like

you sell it and re-buy it at the same

time so now you take the loss but you

don't get impacted by the wash sale rule

so you can take the loss lower your cost

basis and re-buy at that lower cost

basis by realizing that loss and really

you haven't done anything because you

just quickly sold and then re-bought

just saying you only got another like 13

days to take advantage of that

opportunity something to keep in a

consider look it up yourself fact check

me on that okay i'm not a tax advisor

now before we talk about some more

things that could be bullish for

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below now in my opinion we've also got

quite a few things that make me a

bullish also for cryptocurrencies first

of all we know that this week elon musk

tweeted that tesla will make some

merchandise buyable with dogecoin and

we'll see how that goes obviously doge

had a pretty good spike after that which

was very very exciting for the dose

community uh though that spike did not

unfortunately last very long we've been

sitting down over here just on top of

that 1632 support we're sitting at 17

right now we did have a very nice spike

to where we rocketed past about 21.4

but again unfortunately that did not

last very long look at this temporary

elon musk move here yikes and then right

back to that 1632 essentially which

we've been channeling here between 1632

1939 significantly closer to that 1632

over here of course you could see those

that liquidation spike which we saw at

btc as well uh the fact that we that we

keep coming back to this especially

after uh liquidations like we had seen

as is a sign that this is a pretty good

relatively strong support line we zoom

out obviously on the day chart uh you

know we've definitely got a little bit

of a momentum bleed here but despite

that we seem to be flooring because look

at this we hit this in june this bottom

we hit this bottom in july

we hit the 19 bottom in september and

now we're sitting at that floor again so

the good news again and i find this is

bullish is we're having a lot of trouble

breaking down under that floor it's kind

of like in another video i talked about

how you know docusign had this massive

sell-off you go to the day chart on

docusign massive sell-off but even

though we keep getting worse and worse

news on some of these days we're not

breaking past that floor and so far i

find that some of these things are

bullish no guarantees right but it's

exciting

you know elon musk's like elon musk in

general he likes doge more than bitcoin

because of the transaction volume that

bitcoin supports at this point until of

course we get to lightning and we fully

implement lighting right now transaction

volume for bitcoin is relatively low and

that makes the cost per transaction high

a fun note if you haven't seen the video

of elon musk being interviewed by time

magazine in it he talks about how

bitcoin is a very suitable store of

value and even a transfer it's really

good for transferring that store of

value especially across borders but he

believes that fundamentally it's not a

good and suitable currency for

transactions again at least

at this point dogecoin he actually

believes is better suited for

transactions because of that higher

potential total transactions remember

the tps

transactions per second that we can do

right now bitcoin right now sitting at

about seven transactions per second doge

at about 33 once we get to lightning or

ethereum 2.0 of course these numbers are

going to explode like ethereum 2.0 is

going to explode supposedly to 10 000 uh

per second or more visa can support

somewhere around 40 000 transactions per

second but tentatively really transacts

about two to four thousand transactions

per second uh you know cardano right now

before we get to the theoretical one

million which is the hopeful goal is

about 250 transactions per second it's a

lot as the one that really takes the

case here solana by the way we'll talk

more about nfts in just a moment but

where i have where i have a jungle cat

it's the only nft that i own but anyway

solana 50 000 to 65 000 transactions per

second

juicy juicy juicy in terms of

transactions so anyway elon definitely

has an affinity with doge we know that

elon's come out and talked about how

many employees at tesla facility

facilities talk about their dogecoin

investment so he does have a slight

affinity to doge compared to probably

some of the other coins like whether

it's polka dot natick uh or or um

ultimately uh solana but anyway uh we

look we know that doge is also slightly

inflationary but that inflationary

number is fixed elon talked about that

as well so over time that inflation

decreases it becomes less inflationary

over time but still encourages

transactions and spending which is one

of the benefits of having a slightly

inflationary concurrency relative to uh

store value currency now uh something

else that's worth noting is the irs has

also now added a check box to your irs

1040. you now have to answer the

question quote at any time during 2021

did you receive sell or exchange or

otherwise dispose any financial interest

in virtual currency and now i think this

is kind of interesting because

we did get some know your customer rules

that were changed in the bipartisan

infrastructure package and so uh there's

there's a lot of new tax reporting and

transaction reporting coming to crypto

currencies a lot of frustration by the

way for cryptocurrency miners because

while they're validating transactions

they're not actually collecting

information from uh the people whose

transactions they're validating but this

is just congress being entirely stupid

but it's worth noting that

you know there are going to be a lot of

people who feel like you know i'm not

going to check that box i kind of worry

and think that that box is a trap

because the bipartisan infrastructure

package is also requiring companies like

blockfy coinbase robinhood to report uh

at least some degree of your

cryptocurrency transactions so i'm

worried that if you're like no you know

my crypto's not going on my tax return

or whatever and you don't check that box

and it doesn't like automatically

trigger another form that you have to

fill out which i thought was really

weird it's just literally did you or did

you not that's it like there's no other

form that it says like oh if you check

yes then go to the next page or whatever

it doesn't say that it's really weird

it's literally it feels like it's just a

test to see if they want to come audit

you or something

so uh you know i'm gonna answer that

totally honestly like hey yup i'm

checking that box yes here this is what

it looks like just so you could see it

on the tax return form right here at any

time during 2021 did you receive sell

exchange or otherwise dispose of any

financial interest in virtual currency

and then just has that yes or no spot

right there with nothing else it's not

again it's not like if you check yes go

to this form or whatever

kind of interesting kind of a little sus

uh but anyway that that did appear so

something else to know other things to

keep in mind folks nft is absolutely

blowing up you've got the global market

for non-fungible tokens this year

getting to 22 billion dollars so the

bees auction house sold nfts totaling

over 100 million dollars

78 of nft bidders by the way were new to

sotheby's so they are obviously opening

up a whole new cohort of customers more

than half of them were under 40 which

aligns with what visa reported to us

remember folks visa told us

in in their piece which they had a

phenomenal piece on this but they told

us that active owners and passive owners

of cryptocurrency are much more likely

to be millennials younger than male and

if you go over to the cryptocurious

cryptoskeptics or the crypto unengaged

cohorts you get people who are more

likely to be female

boomers and don't watch youtube that was

literally one of the things on here they

talked about

the biggest sources

for the unengaged or crypto skeptics

their biggest sources of information

were tv so mainstream media and their

friends or family

who are probably also watching

mainstream media whereas the active

owners look at this primarily get their

information about crypto from youtube

boom

it's pretty awesome uh but look nfcs are

exploding i only have one nft one of the

reasons personally i'm not the biggest

nft buff in in terms of putting more of

my liquid assets into nfts is mostly

because of liquidity i'm a big fan of

trading crypto that's why i i bought a

lot of ada at a dollar that's why i sold

out uh near two dollars it's why i

bought a lot of bitcoin and ethereum

when bitcoin was sitting around 28 000

to even 37 000 anywhere in that range i

was willing to buy crypto as it was

still running up 35 36 37 000

just because of the trend signals it's

easy but i like

transacting quickly and if i have let's

say my ethereum locked up into a crypto

punk which i've seriously considered

then in order for me to trade that my

time frame for being able to sell a

crypto punk could be anywhere between

two weeks to quite frankly three months

before somebody buys my crypto punk and

by then my trade opportunity could be

gone to lower my cost basis or whatever

so

if you know there are some nfts i'd be

willing to just huddle forever like i'm

going to huddle my jungle cat i love it

uh but in terms of a larger portion of

my portfolio i love that liquidity of

being able to quickly move my

cryptocurrency it's one of the reasons

that for trading i keep most of well

right now i keep almost all of my i'd

say 95 of my cryptocurrency at coinbase

pro because the fees are the lowest

however if you're just a straight and

this is going to make some people cringe

i know what i know it but if you're if

you're just a straight up trader of

crypto and you don't care about trade uh

staking honestly robin hood beats

coinbase pro on the fees and it pains me

to say that pins me to say that i know

not your keys not your coin i get it

but uh they do have the best fees

uh anyway so uh yeah sotheby's blowing

up uh you know

christie's is obviously competing with

him as well remember christie's had that

69 million dollar

auction for uh the beeple nft that was

really really incredible uh 69

million dollars folks

in case you're not familiar with uh what

that nft piece was uh here's a picture

of that nft really really really

incredible here the first 5 000 days

[Laughter]

really exciting uh then of course you

did have the most expensive crypto punk

to sell yet they did remove by the way

that crypto punk that somebody basically

bought and sold from themselves from the

highest sale of a crypto punk but but

look at this crypto punk here

11.7 million dollars for the uh for the

mast crypto punk really really

incredible but again liquidity

constraints here but uh look nft is

blowing up to the point where sometimes

i'm starting to question how much we're

blowing up sotheby's launched their own

metaverse it's an nft exclusive site for

exploring the metaverse the sotheby's uh

nft collections and galleries and such

in their version of the metaverse look

at this see how they they threw the

crypto punk over there in the window uh

i i don't know some of this does make me

a little skeptical that you know when

melania trump starts launching an nft

collection called melania's vision okay

folks like if you really wanted to go to

melania trump.com the eyes nft and spend

one solana buying uh an nft from melanie

trump you could

uh and and it comes with this you know

positive affirmation here you ready

let's listen to it my vision is

look forward with inspiration strength

and courage

that's deep

that's deep strength courage gotta look

forward with inspiration folks you know

what i'll just keep my jungle cat but uh

anyway i did want to talk also a little

bit about some other coins that i bought

uh i did buy uh i am diversifying i'm

creating a little bit of a basket uh so

right now my basket includes solana dot

etherium avax uh matic polygon and uh

and cardano cardano's been a project

that i've been a fan of for a while

they've gotten through a whole flood

cycle here recently i'm glad that i sold

and now i'm rebuying but then again

that's part of the crypto trading verse

so anyway folks this gives you a little

bit of a look into some of the updates

in the cryptocurrency space some of the

things that i'm doing some of the things

i'm looking at on the charts if you

found this helpful consider sharing the

video check out the programs on building

your wealth down below and folks we'll

see in the next one thanks so much bye