Crypto Panic - Act Fast - Watch This Before It's Too Late!

Added: 2026-06-04

[00:00:00]The crypto market is getting scarier by the hour as the Bitcoin price is threatening to break lower from this bearish pattern, causing fear and panic to return once more throughout the crypto community. Is there anything that can save us? Are we destined to go lower from here? And what should we be doing next? Well, in this video, I'm going to be answering all of those questions, especially focused towards what is most likely to happen next and what's been causing these moves in recent weeks. Do me a favor, hit the like button and let's get into it before it's too late.

[00:00:31]Now, crypto is a crazy emotional world.

[00:00:33]Just a few weeks ago, the bears fell silent. Hope and excitement returned amongst crypto investors. Whilst the Bitcoin price was up around $82,000, lo and behold, Bitcoin has now returned down to $73,000, causing fear and panic to spread everywhere. The bears are louder than ever. Is there anything that can stop us from seeing a major move down to $60,000 and potentially below like we saw back in January? Well, first of all, let's understand why everybody is so panicked and worried right now. Well, it's happening because of two major reasons.

[00:01:07]Partly because everybody has been quite rightly on edge for quite a lot of time because obviously we had that big major fall down over the past few months and then we've been kind of trending up and down, but people are already on the edge of the seat throughout all of this time.

[00:01:20]So any push higher gives only brief relief and calming. Any push lower from that relief results in huge anxiety and panic. But there's also a key chart pattern that has everyone's attention right now. And it has everyone's attention because Bitcoin currently sits at the final level of support here. Now this pattern is called a bare flag cuz it often comes in downtrends. Now we see this bare flag play out quite a lot of times throughout Bitcoin's life. You see it happen between November and January.

[00:01:48]also happened here back in 2024, once again in 2023, and all the way back at the end of 2022 after the FTX crash.

[00:01:56]Now, I've just pointed all of those patterns out to you for a very good reason. You see, half of them broke down, half of them broke up. And if you read Tom Bulcowsk's Encyclopedia of chart patterns, which is pretty much the OG book when it comes to chart patterns.

[00:02:07]He says that bare flags have a 45% chance of playing out successfully to their target, i.e. to carry on lower.

[00:02:14]And they have a 55% chance of failure, i.e. they do not break down lower. But I get it. We saw it happen in January and we've seen it happen plenty of times before. So relying on just the chart pattern isn't enough. There's got to be more information out there to identify whether or not we're going to see a sell-off much like we saw in January.

[00:02:31]Well, in no particular order, let me show you a few pieces of evidence. Talk about what has been pushing us lower recently. Talk about what I'm doing and what I think is most likely to take place in the time after I've made this video and probably into the early weekend. and then what I think is likely to play out over the next kind of week or so ahead. Now, the first thing to think about is what happened in January versus what's been happening now. Now, if you think back to January, for those of you who can remember, this period of time here wasn't anything like the period of time that we've just been through over the past few months. And there's a good reason behind it.

[00:03:02]Throughout January, many people were still in the market. Many retail investors still just holding. Perhaps they bought in down here. Perhaps they bought in all the way back here. Perhaps they've been buying at highs, but ultimately they weren't really terribly down. Okay, they still held on. They thought there was going to be some sort of a recovery, probably sooner rather than later. And that meant that lots of people were still in the market. We also had a lot of traders prepared to kind of sit and try and trade higher. All of a sudden, price breaks down. And when price broke below this support, it also broke the 200 day moving average. It also broke you know various other elaborate trading charts like bull market support bands and whatever the chart guys like to look at. This caused mass panic and fear to take over causing huge massive capitulation i.e. massive selling to take place. Let me use this check on chain chart to show you. See it says realize losses broken down by years. This massive pink spike that you saw here that happened in the 7th of February was effectively because of what happened before. You see, we had that first kind of like capitulation event into early November. People then bought up again. Then the price tanks and you get this massive needle here. This is bigger than the capitulation that you saw around the FTX collapse. You can see that we've already had two massive capitulation events by the time we got into early February. Short-term holders got out the market. Retail holders got out the market. Everybody sold and got out the market. And that caused a very rapid fall in price from $97,000 to $59,000. and it took just 23 days. Now, yeah, maybe you could say, well, let's take it from here. And they say it's still like 19 days. We would only have two or three days to then descend all the way down to these new lows here. So, you see there is a very different behavior going on here from here. This happened very, very fast and it's predominantly because of all of this selling that happened here. So, is there much danger of going much lower from here? Well, if you use this other chart again from Czech on chain, you can see the prices that people hold. Now, each coin is effectively bought at a different price. And a coin that was bought at like 126K is at far more risk of being capitulated than a coin that was bought at, let's say, $72,000 for obvious reasons. Right now, if you bought at 72K, you're pretty much flat even. If you bought at 126K, you're obviously in a bit of red. You're more likely to sell cuz you're obviously on the emotional side of things. That's why you might have bought at 126K. Now, according to this chart, invested value by cohort, it says that the realized cap is between 54 and $78,000. $280 billion dollars worth of Bitcoin was bought between this area here. It says that a quarter of all people are at break even right now. The majority of other people sat down here in profits and there will be obviously some people as well sat in the red. The short-term holders are highlighted in red and these are people who've been holding for less than 5 months. Most of those people have also now been buying in and around this zone.

[00:05:44]Now, because crypto has been hugely uninteresting as far as retail is concerned over the past few months, the only people who've been willing to go and invest and buy at these areas are people like me and other people maybe like you who've been in crypto for a long time. You recognize when there's fear and panic in the markets, you tend to like to go and buy in this area. So, if the markets was to dip again, you as a short-term holder are probably going to do what I'm going to do, and you're going to buy into the market rather than being a short-term holder who bought up here, who's likely going to sell out the market if the price goes lower because you've already been through a lot of pain. You hope that you could recover, then that recovery goes further away from you. You get out the market. So, there's very few sellers in the market right now. What is causing this price lower? Is it the news? Is it what's happening with Iran? Is it what's happening with Donald Trump? And is it what's happening with interest rates and whatever else? Well, I think where we are is this. There's basically complete apathy in the market. Means nobody cares. Okay? No one wants to watch YouTube videos. No one wants to buy in the market. No one wants to sell in the market. Everyone's just sat there. Okay?

[00:06:44]People who are bullish are just waiting for maybe if it does go lower, they'll buy. If it goes higher, happy days.

[00:06:49]People who are bearish are still just waiting when they get the 14th of October calendar alert from those big YouTubers and whatever telling everyone that it's safe to buy now. But that's basically where we're at. spot sellers and buyers bored to hell. We've seen a lot of ETF outflows, okay, ETF selling.

[00:07:05]So over two billion dollars across eight sessions have been sold off, one of the largest clusters and that's what's kind of caused a little bit of that price move, but that's also seemingly taking care of itself, right? We're seeing selling pressure being absorbed by buyers. And I just want to jump back to this post here from Bitfinex, right? The breakdown that took place for Bitcoin to 60K in February is not having the same impact on the market today. I've already talked about the kind of the speed and whatever that happened. ETF outflow has been running at $700 million a day close to the February prince that drove the price from 100k to 70k. This time the price is holding. An unidentified bid is absorbing it. I.e. one big old buyer who just wants to buy every time the price is wicking into it. And this is what we're paying attention to. Things are shifting. Remember back in 2022 there was no ETFs. There was no other flows going on in crypto. Back in 2021 the market also topped on extreme greed and hype and excitement. Everything has been very different this time around. So we can't look at this in the exact same way expecting the exact same thing to happen. We should be using all the information and data ahead of us because remember think back to that chart earlier 55% chance of not happening or 45% of chance of playing out. We can't just rely on those kind of probabilities. So what is our biggest threat? What caused price capitulation back in January? Because it wasn't just spot buying. Well, I believe our biggest threat is this coming across to coinlass.com. And I've shown you this before. This is the open interest. It shows you where leverage traders are sat right now. Are they sat in shorts hoping price goes lower or are they sat in longs hoping price goes higher? Well, you can see that right now they've started to stack up into longs. As price has been falling, they have continued to stack into longs. This is quite interesting because you can see back in January we had something similar play out. People stacking into longs. And this is somewhat of a little bit of a concern for me. Why? Because of this. If something does cause the price to go down quickly, then you can see potential for a little bit more of a sell-off.

[00:09:00]Here's why. Whilst there might be certain whales that are buying up enormous amounts of Bitcoin in and around this zone right now, there is also the danger of liquidations of long trades, right? Because if they get liquidated, whether they like it or not, they're forced to sell their Bitcoin and then that sale can force price down.

[00:09:18]This is why you get these big kind of capitulation events. And this is what we should be looking out for. If we see price continue to decrease and you see that leverage ratio going up, scary.

[00:09:28]Ultimately, you want for liquidations on the long side to happen or people getting out and starting to try and bet that the price is going down because that adds more fuel to the upside and it reduces the potential for a major slip up. But ultimately, I'm not too worried.

[00:09:42]Why? Because the sentiment is still absolutely horrible. Everyone's still convinced that we're going lower.

[00:09:47]because everyone's convinced that we're going lower, it means that they don't hold crypto anymore. And if they don't hold crypto, it means that they can't sell. Despite looking at the screen and praying it goes to 40k so they can buy in, they don't hold anything. They can't have an impact on the market. There was a lot of people holding who had a lot of impact on the market by selling out of it all the way back here. So what do I think is the most likely move to play out for Bitcoin and the altcoins in the short term? And what am I going to do about it? Well, before I do that, I just want to shout out this that's happening on Bitnix right now. There is a May trading showdown where you can win up to 40,000 USDT and gold prizes. All you got to do is sign up through the link down below. This competition will end soon.

[00:10:25]So, make sure you don't miss out on it.

[00:10:26]I personally use Bitnix every day along with a number of other exchanges predominantly because Bitnix has beyond any others the most altcoins available.

[00:10:34]Any altcoin that I pretty much will ever talk about on this video and any other YouTuber ever talks about will always be available on Bitnix. Make sure you sign up through the link below so that you can qualify to potentially win $40,000 and some gold. Okay, so what the hell is going to happen next? What should we be doing? I appreciate right now that everyone's feeling a little bit emotional. Okay, it's difficult. We must overcome this emotion to make the most logical decisions. So, I just want to show you something from the past and ask you a simple question. This is 2021.

[00:11:02]Would you have been happy if you bought Salana here at $43? Bearing in mind that eventually Salana went to $260. This is back in 2020. Would you have been happy buying here at $4.72 even though you went 76% down at some point? Well, chances are the answer is yes. But most people would have been doing things like this. They would have bought in here and eventually sold up down there. Eventually the price would have come up to here. They would have probably got into the market and bought.

[00:11:27]They would have gone through all this period and then it would have dumped.

[00:11:29]They would have sold and waited for kind of better times to come. The market came up here. They probably would have bought into it. Came back down here. They probably sold. And by this point, they'd kind of run out of all their money that they ever had to invest in things because this took place between April and like July, four or five months. And then from here, you can see that the price obviously rips towards the upside.

[00:11:46]But in order to enjoy this kind of time in the sun, you basically have to be positioned correctly and be able to get through all of the emotions. It's so easy for everyone to look back and be like, "Oh, it would have been amazing if I had the chance to buy Salana at a dollar and to buy Bitcoin back in the day." You know, life would have been so easy. Imagine being able to hold Bitcoin from like a $100 to $1,000 and then back down to a h 100 bucks again. For it to go up to 20 grand and back down to 3,000 and then back up to $70,000 and then back down to $16,000 and then back up to $126,000 and then back down to here. You get what I'm saying? The emotion, it's easy to look back because you don't have the emotions. We have to think without emotion because emotions lead us to make bad decisions. If we look back to every bad decision we made in life, usually it's because we're scared, excited, or perhaps drunk. But assuming you're not drunk right now and you're looking at the charts wondering what to do while you're feeling filler fear, we need to zoom out and look at this logically. I believe that there is a reasonable chance that Bitcoin can dip into and around this area. That looks like a very interesting point here. Okay. I don't know that it has to. I don't really care if it does or it doesn't. If it does, then I will consider buying a little bit more into certain positions, not necessarily into Bitcoin, but I will look into some altcoins. And I'll explain why that is in a moment. If nothing happens and we go back up here, then I'm also fine. If the price comes down here, it doesn't necessarily invalidate what I'm thinking, but it does mean that we're probably going to spend a little bit more time in this bottoming zone. I would be incredibly shocked to see it come down into this zone. Okay? But ultimately, all I can do is use the information and data available to me to make the choice that is right for me. If it comes down into this zone, so be it. I don't believe it's going to happen. I do believe the most likely is that we're going to come down into this sort of 70 range probably at some point over the weekend and then from there I think we see a strong bounce. Ultimately it wouldn't be a bad thing to see a bit of extreme fear shoved into the market and then to see a good strong bounce from there. It would get rid of a lot of the leverage and then allow us to move up more calmly into early June where I think June's going to be a fairly strong month for the crypto markets. And this is why I'm looking at altcoins versus Bitcoin right now. While Bitcoin's been kind of a little bit shaky over the past few weeks, the others, which is altcoins versus Bitcoin, still sit in this ascending triangle. Now, they've been in this ascending triangle ever since October. And if you look back, this basically bottom back in June of 2025.

[00:14:03]This was all the way back in February of 2025. And you can see that ever since basically the altcoins versus Bitcoin have just been sat in this little lull period here. Now, I think looking at this, eventually we're going to see a break beyond this particular point. I think maybe we've already broken out.

[00:14:18]We've come back to retest it and now we're pushing higher. Eventually, if we do run into a period of time like this, which according to a lot of the stuff I'm seeing with the ISM or manufacturing index rising, I'm seeing copper versus gold rising. I'm seeing a lot of markers showing that the markets in general are in expansion. Crypto right now is yet to see that. But we've seen the stock market rallying like crazy. We've seen the Russell 2000 rallying like crazy.

[00:14:39]And that's all because of injected liquidity. It's all because institutions being forced down the risk curve. I do think that there is good future ahead versus the risk potential in the short term for good strong altcoins. Now I made a video just a couple of days ago on altcoins, how to identify strong ones. So make sure you go and check that out if you want to go know more about different altcoins. But effectively go and find ones that generate good revenue. Go and find ones with good onchain data, good onchain metrics, things that are active, okay? teams that are building and active because eventually when the market is good, they will pump money back into their tokens and you're going to see a lot of excitement once more. We've seen it over the just the last few days. XLM had a good run. You've seen Wellcoin pumping.

[00:15:19]You saw Render pumping for a bit. You saw NEO protocol pumping for a bit. Many others all of a sudden they've been kind of coming back to life. Whether they have to stay up there, maybe they come back down, doesn't matter. Eventually, when the market returns to the sunshine, those big strong projects will have some good runs. And right now, I think there's some good value available. Hope you enjoyed today's video and found it useful. Do me a favor, hit the like button, leave a comment down below to drown out the saltiness of all of the bears who want price to go much, much lower. Have a great weekend and I'll see you very soon in another one. Bye-bye.