Bitcoin Bulls Are Getting TRAPPED: The Charts Flashing Danger

I grew up with nothing. Success felt
impossible until I found crypto in 2018.
I made every mistake, chasing hype and
holding coins to nearly zero. I then
found technical analysis and it changed
everything. My perspective on this
industry and my success within it. Now
I'm passing that knowledge on to you.
Welcome to Bitcoin Revealed, [music] the
true story.
Hey folks, Nick Valdez here, chief
crypto strategist at Verified Investing.
And today we're going to talk about
where I think the Bitcoin bulls are
going to get trapped. And we'll go over
a live trade that I am in right now on a
particular altcoin that might be a
little bit oversold on the smaller time
frames. And we might even touch on Micro
Strategy. What did they do recently?
They diluted their stock heavily, but
what did they do with the cash? Did they
buy Bitcoin or did they do something
else? Everybody, now go ahead, smash
that like button. I see your comments.
We will get to Zcash. We'll look at some
of your favorite altcoins. Just let me
know down in the comment section what
you would like me to cover. And I hope
everybody had a great weekend. Like I
said, make sure you smash that like
button, everybody. Now, let's go ahead
and talk about the major movers. And
we're starting here with the Bitcoin
chart. And this is the key level that I
am looking at everybody. Now, we're
going to run out this trend line and see
where it interacts with today's price
action. But look at this wick low. This
is the November 2025 wick low. We had a
nice little, you know, some were calling
it the Santa Claus rally. We had a nice
little rally, you know, right before
Christmas. Little bit of a retrace and
then had a nice pump into the middle of
January. This is January 14th. And then
we had a major correction here. Let's
actually measure this. Uh this was
pretty quick. About three weeks, Bitcoin
fell 40%. Huge, huge correction, folks.
And I'll also show you uh the Bitcoin
gold chart. But first, let's look here.
So, I want to show you this trend line.
And if you extend this out, keep going.
Keep going. Keep going. Look at that,
folks. That's exactly where we would end
up rejecting. Now, we did try to push a
little bit higher today, but now Bitcoin
is pulling back. And I would also keep
an eye on this green rectangle. So it's
the wick low here to the the high that
we established in May. And then this to
me is going to be a very important zone.
I you know I'm I'm suspicious. I am
suspicious. Don't be suspicious. Well, I
am suspicious of this pump. And so I'm
kind of watching this area and I want
Bitcoin to confirm above that area
before I would heavily flip bullish.
everybody. To me, this is going to be
very important right now about two
factor resistance that I'm keeping my
eye on. Now, also other altcoins in the
market, folks. We got to talk about what
we're seeing with Ethereum. But before
we do that, there's one more Bitcoin
chart I want to show you folks. And let
me know if you like seeing these
different types of Bitcoin charts.
Bitcoin priced in gold, maybe Bitcoin
priced against the S&P 500, you know,
maybe Bitcoin priced in heck, who knows,
you know, Chuck-E-Cheese tokens,
whatever, whatever you want me to look
at. But this is Bitcoin priced in gold.
So, let's look at the number on the
right. The number on the right is how
many ounces of gold each Bitcoin buys.
Now, only went back a few years. This is
the 2021 run. This is the 2022 run. I'm
sorry, the the 2024 run. And I want to
show you the last bare market. So this
is the bare market of 22 and 23. We
actually had a breakout really close to
the level that we're at right now. In
fact, you could say the breakout
happened at 16 ounces of gold and then
we saw Bitcoin really take off where one
Bitcoin would later be worth 40 ounces
of gold. Now, right now, gold, in my
opinion, is going to see a little bit of
a pullback and all eyes are going to be
on can Bitcoin pump while Bitcoin or can
Bitcoin pump while gold consolidates or
maybe even while gold dumps. Now, let me
go ahead and, you know, be a little bit
of a a contrarian to that take. We have
a higher low with this bare market. So,
we may we may need to have a higher
breakout level. Maybe we need to break
out. You know, if you look here, we kind
of retrace to the last local high. Maybe
we need to come up and then retrace back
down to 17 and then we could have a nice
run maybe around 20 ounces of gold,
maybe 21 ounces of gold. So that's kind
of folks what I'm going to be watching
in the near term. Now let's cover some
of these altcoin folks. I know you guys
love these altcoins. Salana. We'll look
at Salana. I'm reading the comments. You
never cover Salana. Salana is actually
probably my fourth largest crypto
holding. Number one and number two. I
almost don't want to reveal this folks.
number. All right, because I'm
embarrassed about number three. Number
one and number two are uh hyperlquid in
Bitcoin. Everybody should have more
Bitcoin. You know, you should definitely
be heavy Bitcoin folks. Hyperlid. Number
three, I will leave it to you guys to
try to dress uh you know, address in the
comments. Give me a guess there, folks.
And then uh you know, number four is
probably going to be Salana. But first,
let's look at Ethereum. This is what I'm
looking at on the Ethereum charts. Here
we have a descending trend line from
this little local peak into this local
peak. And if we continue to run this out
once again, we have a nice trend line
kind of establishing into the wick that
we saw a few days ago and into today's
wick. Now remember, Bitcoin's trend line
was heading to the upside. Ethereum's
trend line is heading to the downside,
but Ethereum did outpump Bitcoin. I
don't know if it's going to be ready
for, you know, a major major alt season
until we can see ETH, you know, really
kind of hold above this $2,500 level.
Some of you folks are throwing out some
guesses. I'm I'm not going to confirm or
deny, folks. We're not confirming or
denying. All right. Now, but back to
this ETH chart. If we continue to pump,
I like this area right here. This is
right around 3,000. You know, 3,000 is
going to have a strong psychological
level. You can see right here, this is
28,900. This is also pretty much 2870.
Uh, and then if you look at the wick
low, this is right around, you know,
2911. So, 3,000 and, you know, within a
100 bucks. A lot of eyes are going to be
on that one. Now, do we're looking at
Bitbase, everybody. So, big big shout
out to Bitbase. I will reveal my trades
and I'll show you the trade that I'm in
right now. Now, let's look at Salana.
You keep asking for Salana. Dang it. I'm
going to show you Salana. Now, one thing
we've been showing heavily with Salana
is this bull flag. We have a nice little
bull flag and I said keep an eye out on
the bull flag here, folks. Well, how do
you measure a bull flag target? Well,
it's quite simple. You look at the flag
pole and then you put it at the
breakout. Now, some might say, well, the
the flag can't go longer than the pole,
etc. That's not true, folks. That's not
true. Go into the charts. I'll show you
example after example. But look at this
target. Now, we did wick a little bit
higher over the weekend.
But speaking of the weekend, what do you
see? right here. What kind of candle is
this, folks? Maybe let me know down. I'm
going to reveal it in like the next 10
seconds. Keep an eye out on this candle.
This is a very important candle and I'll
point you into a a video where you can
actually watch, you know, maybe some
expectations when you do see this
target. But look at this nice little
breakout. So, this is going to be a very
key level for Salana. And also, we're
kind of running into the wick highs
right here. Gave you these levels, but
folks, I'll be honest, we did wick a lot
higher. This was a leverage flush. This
flushed the leverage to the upside. This
flushed the leverage to the downside.
You know who won in this scenario? The
exchanges. The exchanges are the one
that won in that scenario. Now, Lton
just put out a playbook on this. Trading
Dogey candles for reversals. That was a
dogee candle. It is technically a
reversal candle. And when you see it on
the daily, the larger the time frame,
the more important is going to be. So,
who said what? Lton said keep an eye out
on the dogee reversals. You can kind of
see it right there. It's on his green
disc, I guess, his uh UFO table. That's
like a table in a UFO or I don't know,
matrix table or something. But right
there, yeah, you can see the Dogee
reversal candle. So, keep an eye out on
that, folks, on the Salana chart. I
mean, that is just a textbook dogee
candle. Uh that's a very, very good one.
In fact, folks, now it's not entirely
equal to the upside and the downside,
but is definitely close enough for
strong consideration and a very very
tight daily open and close. You It
basically opened here with pinging ping.
It bounced all around like uh you know
like pong on Atari, but then would close
just a fraction of a hair. Uh it's like
an ants whisker to the upside. Now,
let's look at XRP. I definitely want to
show you this folks. This is
fascinating. Fascinating on the XRP
chart. So, I'm not using your regular
trend line. I'm using the ray. Okay? You
cannot hide behind the ray. You can hide
behind ray bands, but you can't hide
behind the ray, folks. Now, we're going
to move the ray to the bottom of this
wick. And we're at the the top of the
wick right there. And when you move this
ray down, wow. Holy smokies, folks. Look
at that one. It's a very, very clean
rejection on the XRP chart. And if you
look at the daily, the daily is going to
have a tough tough time closing in the
green. So, I'm definitely watching that
XRP chart to maybe close in the red.
That one's not looking too hot, folks.
Now, let me show you something with
Micro Strategy. This is not the best uh
let's just say information, folks. When
it comes to Micro Strategy, Micro
Strategy, they're a, in case you were
wondering, large Bitcoin holding
company. You probably heard of it unless
you've been under a rock, folks. So
their business model, buy a bunch of
Bitcoin, sit on it. You know, you buy
the stock, it's supposed to outperform
Bitcoin, but when Bitcoin corrects, it
also, you know, kind of outpaces to the
downside as well as to the upside. Or at
least that's the theory. Problem is, it
seems like it's outpacing harder to the
downside. So when Bitcoin's heading
down, Micro Strategy is going down like
while pressing the gas pedal. when
Bitcoin's going up, Micro Strategy, it's
like, you know, maybe uh we're running
out of gas. We're not hitting that VTEC
on that Honda Civic engine, folks. So,
what are we seeing here? What is
happening in the crypto market? Well,
they diluted their stock even further.
And this is one of the heaviest
dilutions. Now, what do you mean by
dilution? So, they're spinning up new
shares to sell on the market. This
increases the amount of Micro Strategy
shares and they in fact increased it by
$2 billion.
You're going to say, "Well, don't they
use that to buy Bitcoin?" Ostensibly,
yeah, a lot of the times, but this to me
seems like they're going to pay the
dividend yields on some of their
basically dividend paying instruments,
the STRC primarily. So, they did
repurchase some STRC. They spend $136
million repurchasing some STRC and that
way they have to pay less dividend
payments every single month. So they
essentially have sold a lot of these
shares. Every two weeks actually they
have to keep paying dividend payments on
it. Every month they're basically paying
1%. So it's supposed to pay about a 10%
per year. So close enough, you know,
with 1% a month. So every hundred
million that they buy back, that's
basically one less million dollars they
have to pay every single month. And so
they're not buying Bitcoin. They're
actually buying back their STRC. And
some say the STRC might be the downfall
of Micro Strategy. I don't know if I
would go that far, but you know, it's
just maybe something to think about.
Micro Strategy definitely diluting their
stocks. Everybody, I like this guy. You
know what? I like you too, Justin. I
like you too. Not like Anyways, let's
get back to the charts, everybody.
Zcash, I see you talking about Zcash. I
actually got roasted in the comments for
this inverse head and shoulders. That's
not an inverse head and shoulders. Yeah,
I get it. It's It's not a clean
structure. This head I don't I don't
know what's in the head. I mean, it
looks like maybe an Indian headdress.
Like that's the feather or something. I
don't I don't know. Something's going on
here. But what about the target? Okay.
Don't tell me about the shape of the
head or the shape of the shoulder, you
know? Oh, this shoulder, you know, is an
80s, you know, wardrobe with the with
the pad there, and this one's, you know,
it's a little bit softer. Well, let's
just look at the target. Now, I I'll
grant you not the cleanest head and
shoulders pattern. I I do like cleaner
patterns as well. Don't talk about my
male pattern baldness. Dang it. But if
you look right here, wow, look at that.
Very, very close target right there. I
mean, honestly, within about a couple
bucks. And what's interesting about the
Zcash top, this was the top for the
previous cycle. Now Zcash is kind of
marketed as a privacy Bitcoin and you
know it's it's a pretty good marketable
term. Hey, you know it's it's Bitcoin
but with privacy and it's a little bit
better off in the you know the the
quantum mechanics world or when AI is
breaking everything left and right.
Zcash is more insulated. It's more
easily upgraded against some of those
future threats. And there's honestly a
Zcash cabal. Uh the the Bologies, the
Naval Ravenots, the the Chimath
Polyhapatias. There's a lot they all
kind of have something similar. But
anyways, I digress. They all love Zcash.
And a lot of those Zcash bulls do
Diamond Hand, but there's also a lot of
speculators. And it looks like in my
opinion, they're taking a lot of profit
on this one. Now, let's look at Cardono
real quick. Uh you know, we're kind of
running out of time here. I want to make
sure I get into this chart. This chart
very, very close here. There we go.
Let's get that perfectly. Now, it did
wick a little bit above, but and it it
broke out of this parallel channel. Did
not test the bottom. We we we took
profit. Uh we didn't catch the tippy
top. I think we actually sold it the
next day. It was on a Saturday if I'm
not mistaken. So, we sold near the top
of the parallel channel. We were going
to buy some uh more ADA down near the
bottom. Didn't quite hit our target. But
if you look at that, look at that. Maybe
we can use the top of the parallel
channel for support. And then maybe I
would look to, you know, if if you are
in some ADA and you just don't want to
sell right now because of the red
candles, maybe look at taking some
profit right here. But hey, what do we
have right there? We have another Dogee
candle. Now, I do want to give a quick
shout out to Bitbase. We've been
knocking out these trades. I added, I
think, four more trades today. Yeah,
eight. Today's the 24th. More profitable
trades. We made a couple hundred bucks.
Uh, you know, I'm I'm going to reveal.
This is Bitcoin revealed. That's right.
That's right. We changed the name
everybody. Revealing all the trades.
This is the first page. This is going to
be the second page here. Uh we have one
little loss, but folks, we are smoking
it. Smoking it like some meats in a up,
you know, some canery or something. Uh
you know, some nice trades, including we
had the $700 win on XRP and I think we
had one, you know, decent loss that I
had to leave. This is 17:00. I had to
leave at 5:00 PM, folks. I I just had to
leave, folks. that would have been a
winning trade and then just now open the
fifth window. So that's what we're
looking at with the bitbased trades
there. We are uh in a trade right now. I
could have I could have maybe shrunk the
position here. I'll go ahead and you
know let's not talk about Oh, okay. You
won some trades, you know, two hours
ago, give me something now. All right,
I'll give you something now. Looking at
zero. Zero is heavily heavily oversold
here. Let's see. This is the five minute
chart. Yeah, looks like we are down
about seven seven and a half almost 8%
last in the last couple hours here. Uh
the the daily charts pretty interesting
on this one too. Looks like maybe coming
in to retest, you know, maybe nice
little pivot area right here. You see
this acted as support, you know, turn
into resistance. Maybe it's going to act
as support again. Looking at this one,
uh you know, this is our break even.
Actually, we're kind of in the green
while we're live here, but uh you know,
I might add to the order. Maybe I'll
move it up. I'll chase it, folks. I
ain't I ain't scared to chase it. And
right now, uh, you know, so we'll be
looking to close this one in the green.
Keep the streak alive, folks. It's all
about singles and doubles with trading.
Don't go for those home runs. Don't go
for that. Well, I got to 50x this and
make my mortgage. Calm down a little
bit. All right, but if you want to check
out Bitbase, we do have a link down
below. And in fact, you can go ahead and
scan that QR code, folks, and that'll
take you right to it. And we got some
awesome bonuses up to 20,000 USDT if
you're a whale. If you're a smaller
trader, yeah, you're not going to get
20K for free, but uh really really nice
bonus for the people who do sign up. So,
go ahead, make an account if you want to
jump in on some of these trades with me.
And I might be in the live day trading
room. Maybe maybe you'll see us, you
know, talk about our entries, talk about
our exits, talk about our strategy
there. But I do appreciate you guys
sticking around to the end. As always,
let me know in the comment section what
you want me to cover. Whether it's the
Bitcoin ETH chart or maybe your favorite
altcoin, we'll cover it all, folks. I do
appreciate you sticking around. Hit that
like button on the end and I'll see you
in the future. Thank you very much.