Psychology of a BITCOIN Crash – Did You Really Think this Wasn’t Gonna Happen?!


what’s up everyone so it’s the aftermath
of the Bitcoin flash crash as all of the media outlets are calling it and we’ve
had a ton of different comments from followers and I’ve seen a lot of
different conversations going on obviously all the articles from the
media and they keep calling what just happened to flash crash and I think this
is absolutely hilarious and I just want to talk about the anatomy of a Bitcoin
retracement and we’re gonna check out some charts to kind of get into that but
but the first thing that I want to say is I am just astounded how many people
are like shocked and just like pulling their hair out that Bitcoin just went
down by what realistically it was a move down over three thousand dollars over a
couple of days which is big but the initial crash was about two thousand
dollars and people just absolutely lost it and yeah I’m saying oh my god it’s
the insiders and whales and this and that
guys this is this is Bitcoin this is what happens this has been a regular
thing for god knows how long and seriously the the idea of people being
surprised that it fell back by 3000 after running up by over 4,000 in a week
I just don’t get it I mean guys if a currency or anything inflates by 40% in
a week it’s going to retrace I mean I know everyone wants to see Bitcoin go to
the moon but it’s not a straight shot you know there’s a there’s pull backs to
the whole way so anyways let’s go over here we’re gonna open up this chart and
just kind of take a look at what really happened the time period it happened in
and my kind of opinion on the general way that a Bitcoin retracement happens
because uh one thing that got pointed out a lot is that hey this happened so
fast it’s not just a retrace it’s a crash but the reality is you know I date
trade cryptos I often trade altcoins more than Bitcoin and use Bitcoin as an
indicator but flash crashes are like one of my
favorite things to trade because they’re so easy to pick
out once they’ve begun they usually last about 15 to 20 minutes and generally you
can make a pretty good profit off of that
I mean minimums usually around 8% so you know it’s it’s not this big mysterious
thing I trade them all the time I think all eyes are on Bitcoin recently and
that’s kind of why people are pointing it out but anyway so let’s look at the
run-up here and kind of try and visualize what happens so we’re sitting
here around $9,000 and there was a very short run up towards the $10,000 range
and there was obviously some resistance around there and then of course there
was the Libra Facebook coin abomination of what it is but there was that
announcement which drove a lot of volume into the crypto market there was a ton
of buying so what we saw is basically that breakout from 10,000 is a
combination of institutional money coming in on that news and also you know
generally crypto and people that are apprised of the market responding to
that news of the Facebook cryptocurrency so that initial shot up is usually very
extreme so with Bitcoin we usually see a run begin with an initial pump and it
flies and then once the people that are ahead of the market have already bought
their shares the news starts coming out the price starts going up and everyone
else starts buying in and that’s where we see these you know slight increase in
a little bit of a run-up and then you kind of hit a critical mass point when
you hit that critical mass point FOMO kicks in and all these people that
have been waiting around to buy a Bitcoin but they didn’t want to do it at
3:00 and didn’t want to do it at 5:00 now it’s too late and they want to get
in and then things just skyrocket and usually one of the big things I trade
off of is the RSI and stochastics usually when this happens everything is
already overbought to living how it’s so overextended nobody should
buying at this point but that FOMO kicks in and the price just absolutely
skyrockets like we saw when I shot up to 14,000 and then what happens
all these insiders all of the guys that did this early on are sitting you know
way back on their shares that they got on nine where everyone else started
picking up in the eleven to twelve thousand dollar range so when it goes
and shoots in it taps 14,000 it doesn’t instantly plummet down because of some
mystery it instantly plummets down because big institutional money and big
whale money is just liquidating their shares at that high price in one single
swing so it’s not this big mysterious thing you’ve basically got this sequence
of insiders and smart money by okay comes in and the price pumps up
immediately from those big buys the general market slowly filters in and the
price comes up a bit yet about there you hit your critical mass point
FOMO kicks in and the people that really shouldn’t be buying buy price skyrockets
you get up there and the institutional money and the smart money liquidates as
it comes down there’s generally a rebound as either they reenter or the
market picks it up and it either recovers or if it continues to go down
what you tend to see is the general market starts to sell into that and FOMO
you know if it goes in both directions they see the big institutional money
dump and suddenly you know the not-so-smart money begins to dump
because they’re scared and lo and behold the price slides further you know
Bitcoin does not act like a traditional market there’s no doubt but it’s not as
big of a mystery as people try to paint it as and you know it’s a very simple
issue until there’s more liquidity big institutional orders are gonna move the
market like this and we’re moving towards a more traditional market
structure as more liquidity pours in but we’re just not there yet but to close
this out you know guys you don’t have to cry over this happening so many people
are holding and long only stop learn to trade we’ll put a link up
who are videoing learning how to go short short the market people you
wouldn’t have to be concerned with this if you would just short the market I
think you hope you enjoyed this and it was a little bit i opening on kind of
the anatomy of how a bitcoin drop occurs you

6 thoughts on “Psychology of a BITCOIN Crash – Did You Really Think this Wasn’t Gonna Happen?!”

  1. Downside volatility always perplexes and scares people because society has been brainwashed into thinking that selling short is something "evil." This is more apparent in crypto where things move a lot faster than traditional markets. Great video!

  2. You should make more videos Dude, your a natural!….anyway it's the same old human nature thang and it ain't never gonna change. 👍

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