These Altcoins Are Crashing After Bitcoin Pullback (Are They Dead?)

[00:00:07][music] [music] >> Hey folks, Nick Valdez here for Verified Investing. Thank you for joining everybody. We have a huge show for you today because we got to talk about the recent changes that we've seen with the Clarity Act and now Bitcoin is starting to pull back, but some altcoins are doing okay, but other altcoins, it is a complete bloodbath. And we're going to check out those tokens and talk about what is making the winners and the losers of this upcoming potential alt season. And not only that, at the end of the show today, we're going to look at yesterday's trade. That's right. I put in a position on an altcoin and I was actually able to add to my position this morning and I'll talk about my thesis and I'll talk about where I'm going to take profit. And once again, folks, please go ahead, smash that like button.

[00:01:05]I really am enjoying working here over here at Verified Investing. Getting into my second week and folks, you're going to see me on the other channel as well, Verified Pro, where we're starting to put out some videos on commodities, we're putting out videos on stocks and other things, but let's just go ahead and jump right into the charts everybody. We're going to start things off with the Bitcoin chart here and the Clarity Act, the odds of now plummeted to 37%. Yesterday, it was 53%.

[00:01:32]So, we're looking at a 16% decline and I think that's a large reason why we're starting to see a little bit of a pullback on the Bitcoin chart. We gave you this parallel channel a while ago and Bitcoin, you know, is just kind of pushing up from the bottom ends, getting rejected down here at the bottom uh on the top end. However, we did we were able to break through yesterday, but look what happens when I go to say, let's just do the 2-hour, come within $100 of retesting this range. Now, I'm not saying we're out of the woods just yet, but that might have been the retest, the return to the scene of the crime for Bitcoin to, you know, now start maybe potentially moving higher. But, all eyes are going to be on this Clarity Act and whether or not it's going to pass. It looks like the Democrats and the Republicans are trying to come to terms, and they've released a little bit of the text. It does look like they're going to ban presidents from issuing meme coins.

[00:02:24]But, this rule is not going to take effect until Trump leaves office, January 20th, 2029. But, from that moment forward, no more meme coins from any politician. So, you know, that seemed to be one of the main sticking points. So, it is looking good for, you know, potential passage here for the Clarity Act. But, right now, the prediction markets are not liking the odds, and we're starting to see the pullback. But, let's talk about some of these altcoins, and we'll talk about, you know, some of the levels we've been outlining here. Now, ETH trying to break free of this little bit of resistance. This is the latest resistance that we're looking at for the ETH chart. You just draw your trend line from the tops that we saw here at the end of January into the candle bodies that we saw on the mid- uh May 11th.

[00:03:06]And, look at that. That is right now where ETH is starting to find a little bit of a spring here, a little bit of a platform, a foundation, if you will.

[00:03:15]And, I'm looking at the push up to $2,000.

[00:03:18]ETH, it's a strong psychological level.

[00:03:20]It loves interacting with this $2,000 level. And, if you look at this area right here, you just see how often it would wick right into this 2K level before a pullback. Wick into it, wick into it, wick into it, wick into it, wick into Yeah, I mean, you're seeing a little bit of a pattern here. It's just a strong level for the traders to take profits. We're going to need to go ahead and flip this into support before we could really start talking about any kind of bull run for Ethereum. Now, I'm reading your guys' comments. You guys want to see more XRP. I can't promise a chart every single day on it, but we can certainly look at it today. XRP has that nice falling wedge.

[00:03:56]You see the price, you know, found its little little bit of its high end right here, found its foundation on the falling wedge, and look at that. If you draw it to this next wick, bam bam, we that's where we found support lately.

[00:04:08]And if you draw from this top to this top right here, you can just see how XRP just getting rejected and rejected, but it had a nice little breakout. And if we were to measure this move from the local low right there, it's almost a 10% pump.

[00:04:21]8.88, that's a lucky number over there in Asia. But now this is going to be very close to what I think is going to act as resistance. Uh if you look here, you can see the price was pushed down here, it was pushed down again, and the odds are going to favor, you know, another potential push down for XRP. And that level is right at 118 or 117.9 if you're looking for an XRP trade.

[00:04:44]Let's look at Cardano as well. Cardano doing a little bit of a breakout out of this resistance. You can see it did reject there yesterday. The price wick right into our level, but then was pushed back. But right now it does look like the bulls are trying to take control. You can see it was a pretty clean push through, but you normally are going to return, so I wouldn't be surprised to see ADA, you know, this is a 4-hour maybe pull back a little bit before it can have any kind of bullish move to the upside.

[00:05:11]Now if we were to look at the next potential target for Cardano, well folks, we might be developing the beginning stages of an inverse head and shoulders. Now this is a bullish structure, and the way you would measure the breakout move is you would go from the neckline to the crown of the head, and then put that at the wherever the breakout's going to be, and then that would give you your target. And if you look, that's going to be, you know, pretty close to a lot of action. Not only that, look where it landed. 25 cents. This is 25.1.

[00:05:41]25 cents also going to be a strong psychological level for Cardano. In fact, if you look at this February low that we had, it where or the candle bodies closed right at 24 and 1/2 cents.

[00:05:53]And so, this is just going to be a strong level for Cardano as far as resistance. Now, let's talk about some of the the oversold and overbought.

[00:06:02]Well, we have hyper liquid. It is getting sold off and it's getting sold off hard, everybody.

[00:06:08]Now, we uh we did talk about this range.

[00:06:10]We did talk about our potential entry. I you know, was looking for a potential trade. I just didn't see anything that was really making me too bullish. Uh we are potentially trying to set up a nice bull div on the 4-hour RSI. But, the RSI, you know, it's we haven't really seen anything too strong. But, the RSI on the 1-hour is starting to find a little bit of a footing. But, this to me is just not even clean enough. Now, look at this RSI. This is a clean bull div on the 1-hour. You can see the lower lows.

[00:06:39]You can see the RSI making a higher low.

[00:06:41]This to me is looking a little choppy.

[00:06:44]It's not looking as strong as it was over here. And even that wasn't that big of a move. Uh if we were to measure from the bottom, I mean, this was only, let's see, uh it was only a 4% gain. So, I'm not seeing anything that's making me want to, you know, potentially jump in on a you know, some reaccumulation. I I was considering it near this midway point with the potential wick. I think that kind of already happened. Now, we're coming back down. It's kind of the bouncy ball strategy, you know, the the ball bounced once.

[00:07:12]And then it bounced a second time. It was a much smaller bounce. And that's you know, then maybe you get a little bit of a bounce. But, that's when you start seeing a little bit of a push down. So, right now, my accumulation is probably going to have to be the bottom of this parallel channel. That's the area I'm going to be looking at for hyper liquid.

[00:07:29]Also, something getting just oversold today, coming right into our area. This is another level that I gave you folks.

[00:07:36]This is a descending trend line from the local top. You see just hitting those candle bodies. Where would the next wick hit? Right there on our trend line.

[00:07:45]Where would we find resistance? Right there on that trend line. And where did we find nice little support? Again, right there on that trend line. Not to sound like a broken record. Now, we go to the 4-hour.

[00:07:55]Wow, look at that, folks. Look at that.

[00:07:57]Just beautiful, beautiful touch there.

[00:07:59]However, I warned you about Zcash. This was a 60% fall in 2 days. If you bought that top and you sold that bottom, you just wiped 60% away of your portfolio.

[00:08:10]So, just be very careful trying to trade this one. This one I'm also looking at the RSIs. If we go look at the recent drawdown that we saw in this parallel channel, look how clean this bull div is. This is a just maybe a little lesson here. In fact, not quite the tip of the day, but you know, it's just a good tip for you traders. Bullish RSIs are better on the larger time frames. And if you look at the 4-hour, you can just see a a pretty clean move. You can see that RSI was heading higher while that price was heading lower. So, we had lower lows and higher lows. This would end up giving us a nice bounce for Zcash. I mean, about 60% gain. Right now, we don't have that 4-hour bull div. So, I would maybe wait, see if we could put in a lower low. And if we do have bullish RSI, that's when I'm going to start looking for a Zcash trade. But I'll be honest, I am not trying to touch that thing until I have more clear confirmations. Just seeing a touch of a trend line is not nearly enough. You want a couple factors. You want to have at least two or three that are giving you about 70% odds for a bounce. That's when you're going to want to start looking at a trade. Now, folks, I do see your comments. I do appreciate it. So, I'm saying take a look at HBAR.

[00:09:21]I'll tell you what, we got the HBARbarians in the chat.

[00:09:24]Sure, we we can look at HBAR as well, cuz I have been watching that one as well. It is Hedera. And let me know if in the comments, are you a barbarian?

[00:09:33]Now, looking at this daily, this thing is just getting beaten down, beaten down. But now, we have a nice little support. Um folks, remember what I I didn't even mean to show you this, but the RSI was already open cuz we're just looking at it. What do we see here right here? We see a bullish div on the RSI.

[00:09:49]This has given us a nice little rally, and it you know, hey, it was up over 10% with a little bit of a pullback right now. Looking at HBAR, you know, I do see a couple couple trend lines here.

[00:10:01]It's not, you know, we have a little bit of a bounce there, but we're also going to have some pretty strong resistance.

[00:10:06]Now, if you draw it from this local high to that local high, it's going to give you a little bit of a level, and if you want to go into the candle bodies, starts looking a little bit more bearish. So, let me move this down just a little bit to make it a little bit more accurate. Uh we have a little bit of room to the upside. This one I, you know, in the middle of the range, I'm not looking to trade this one. But, folks, that's a nice 20% pump until we hit the top. Uh looks like you got about a 12% dump before we hit the bottom. So, there's your little HBAR uh chart right there. And now, let's get into some of the other assets that we're going to be looking at. And today it's going to be Chainlink. That's going to lead us to our tip of the day.

[00:10:45]That tip is invest in natural monopolies. You see a lot of monopolies.

[00:10:50]Uh there's a lot of investors, they only invest in monopolies. You may have been taught in school, "Well, you know, they they banned all monopolies." That's just not true. That's just not true. When you when you think about a search engine, you know, at least before AI, there's really only one search engine you're going to use. Uh when you looking at a you know, a video uploading platform for long-form, it's really only YouTube. If you're trying to get a car ride, folks, you're probably going to use Uber. If you're trying to rent a house and not a hotel, you're probably going to use Airbnb. So, you do see natural monopolies. Chainlink is definitely a natural monopoly. We've talked about what it is. It is an oracle. It brings data off-chain, on-chain.

[00:11:26]But, folks, I got a warning. Even though, you know, it is a natural monopoly, this thing might be running out of steam.

[00:11:32]Let me tell you why it might be running out of steam. We have basically get we're a really really close to our breakout target for Chainlink. So, we have our inverse head and shoulders. You go you see your left shoulder, you see your head, you see the right shoulder.

[00:11:46]The way you measure it, we've talked about this before from the neckline to the top of the head. Looks like we lastly broke out about right there. Uh it's pretty close to this descending trend line and that's just catching the bottoms, catching the bottoms, catching the bottoms. I would expect this to act as resistance for Chainlink. Uh and look at that nice little wick right there at our level. And this is just going to be horizontal support where you can see the price has done a pretty good job of respecting this level. Suppressed the price right there. Chopped around this range.

[00:12:16]The bears tried to make it fall. Look exactly where that wick. That wick right to our level. And now we are seeing a nice little bounce. But you can even see the candle bodies, you know, we had a nice green candle, then a smaller candle, and now even smaller candle.

[00:12:30]Wouldn't be surprised if the next candle is maybe a doji reversal candle or maybe even a move to the bottom. Now, if you want to know more about candles and how to locate them and different types of candle types, we do have a course down below. Several courses on in fact. Go to verifiedinvesting.com if you want to learn more about that.

[00:12:48]But I teased the trade in the beginning of the stream here.

[00:12:52]We did take a trade on an altcoin. I gave you my position. I gave you my added entry. Well, guess what folks? We actually hit my level. Now, I'll show you what that level is and of course it's going to be swee!

[00:13:05]Uh that's right. I know I know I had to do it. I had to do the deliverance uh reference there. Swee! Wicked into our support. Wicked right into where we're going to add our entry. So, if you recall yesterday, we we nibbled in. We nibbled in. Added to our our position.

[00:13:20]We only only did about 15% of what I want to add to my position.

[00:13:24]Really, I I a little bit more. I'm I'm a little bit of a degen. I did 25% I added 25% and that was this neckline that we're looking at right here. Let's go to the one hour. Look at that. I was able to catch that about 8:00 this morning. I missed it here.

[00:13:38]This was 3:00 a.m. 3:00 a.m. Eastern Standard Time. But I I saw it right here as I was in the off and I was like, "You know what? I did say I was going to add to my position. We are up. We are definitely up on our SWE position.

[00:13:51]Looks like we're up about 2% but we're waiting for some higher profits.

[00:13:55]Remember, we're trying to hit this top end right here which is going to be a 5% gain. That's going to be our major level of resistance. You can just see here SWE bounced off this range, bounced off this range, and then got pushed down. Look how clean that the candle bodies are interacting with that level. So, we are up on our trade but we're still trying to look for some higher profits. If we can push up a little bit higher, I'll probably go ahead and just get that stop loss. Make sure you leave the casino with money in your pocket. You don't want to go to the casino, be up a whole bunch of chips, and then end up being down cuz you're trying to chase those gains. If you're up, folks, leave that casino. And trading an altcoin like SWE, you're basically playing in the casino.

[00:14:37]But, if you look at technical analysis, you find your factors, you find your bullish setups, you know, you you you you find your confluence of events there, that's when things can start looking a little bit bullish. Now, the RSI is still looking good on the daily.

[00:14:50]RSI potentially starting to sour a little bit though on the 4-hour. So, we are going to be looking to get a little bit more aggressive with our profit taking there. Now, we do have a another head and shoulder target. You look right here, the swing low is going to take us basically right to our target. Look at that. So, nice little confluence of events. So, this definitely means if you're up on this trade, you better take some profits, folks. I don't want you folks to try to ride this thing hoping for a $5 SWE, $10 SWE. If you're up, folks, go ahead and take those profits.

[00:15:23]But right now, all eyes on the Clarity Act. I think, you know, there's a lot of developments happening on on Washington D.C. on Capitol Hill right now. Does look like there's a little bit of some language provisions. Like we said, the Democrats and Republicans are trying to hash out these details. It might need 60 votes to pass.

[00:15:41]Unless they try to add this to an amendment to a different type of bill.

[00:15:44]They have continuing resolutions, but we're not here to talk of politics and you know, what what Skull House Rocks, you know, I'm just a bill. A lot of you might not even know that reference.

[00:15:54]That's for the boomers out there. It's for us boomers. But folks, we bring the show to you Monday through Friday 1:30 p.m. Eastern Standard Time. Please go ahead, hit that like button. Make sure you subscribe. I'm enjoying bringing this content to you folks. I'm exploring, you know, different uh profit taking strategies and just different setups, becoming a better trader. And let's all become better traders all together. Talking about you, you Link Marines. Talking about you, you H-barbarians. Talking about you, Ada gang. And of course, all you maniacs that are obsessed with Bitcoin just like me. I'll see you folks in the future.

[00:16:28]Thanks for sticking around till the end.

[00:16:30]As always, I'll see you folks in the future. Thank you.