BitSwap is the hottest new way to trade tokens. Crawling all the top decentralized exchanges, BitSwap gets you the very best price and value for your trades. BitSwap is changing the game. Try it now at bitswapdex.io. I didn't think it was right if I just came on this video tonight
and did another scripted video. I really want to talk to you guys
from the heart today because I know what a lot of
you guys are going through, and it's tough. What happened this morning
with the Bitcoin price was very bad. Now, not very bad for the long term, but it was very bad for a lot of you guys. I know myself. I got liquidated not once, but twice. And I know a lot of you guys have gone through
the same thing and so I wanted to take this time to really talk to you about
what happened this morning and about where you guys can go from here. So, this dump, I'm not going to say
it was unexpected because what happened is we saw
the Bitcoin price climb above $50,000, and if you watch this vid– or this channel, a lot of times we talked about how the price
was heading upwards to $54,000.
Well, once we got to $54K,
we were expecting a drop. But then something happened. The price just kept climbing and seemed
like it was going to climb forever. When we got close to $60,000 at about $58,500, we know F2Pool sold I think
3,000 Bitcoin in one hour, and that started the unraveling
and a lot of people taking profits. But this dump, it wasn't necessarily on the chart
from what I could see. Everything seemed like it was still bullish, but the problem with that is
logically we think to the fact that we thought $54K was going
to be a place to take profits, then at some point, it had to go down. But really what I want to talk to you about is
the emotions that you may be going through because I know for a lot of you guys that this might be the first time you've
experienced a pullback like this. And I mean, if we're going to be honest about it, we've never seen a pullback like this
in the history of Bitcoin.
We have seen 18% drops in one day before, but the numbers have never been this high. And I remember going back to the bear market. I talked a lot on this channel about if you can't
handle the swings during the bear market, just– or at least when the prices started to slowly
go up and we were between $6,000 and $8,000, just wait until the price is at $80,000
and it drops to $50,000. I think I said those exact words on a video before. Well, now we were basically at $60,000,
and we dropped to $48,000 in one day. 18% drop. And that can bring a lot of really tough
emotions for you guys that are trading and then other ones, you know, other emotions
for you guys that are doing more like you know, altcoin investing or things like that. You really see the dramatic effect that
the price of Bitcoin has on the market. When it drops considerably, altcoins including
Ethereum get absolutely crushed. That's why I don't really trade Ethereum. I only invest in it.
But something to think about is that you might be
going through depression or sadness or anger, but that's all part of the market. It's all market psychology. You have to understand what charting is,
what candlesticks represent. They don't represent price action per se. Like, yes, they have an open and a close
and a top and a low. They have wicks and bodies. But the thing is, is they really
represent human psychology, the way that a human reacts
when the price hits a certain point.
Now, that's why we get these
lines of resistance and support because there are certain levels
where people say like, "Okay, right here, when it gets up here, I probably
should sell because it goes down often." And then, of course, the opposite for support. When the price drops to a certain point, people say,
"Okay, from here, it looks like it will go up." And we've tracked human psychology for so long that we generally know the way
humans are going to behave.
Now, there are elements of market manipulation. We certainly know this. We've seen it with WallStreetBets
and, you know, Wall Street in general, the traditional markets, centralized finance, but with DeFi and with Bitcoin, there isn't as much market manipulation, but it does certainly exist. The thing to keep in mind is the Bitcoin market cap
at $1 trillion, it's not even as big as Apple or, you know, some other large companies. And I think that when it comes to
remembering the crypto markets, especially with altcoins
and Ethereum specifically, the market cap is not very large. When you have people investing on leverage, you have to understand it's not a $1 to $1 ratio between the market cap and
what's actually invested into those. A lot of it is IOUs. So when you have somebody that comes in and dumps a huge amount like
3,000 Bitcoin in the Bitcoin market, that's a pretty considerable amount of money,
especially if that's on leverage as well.
So there is market manipulation, but the psychology is when
the prices go up dramatically, at some level, people are going
to think to themselves, "Hey, you know what? I think it's a good time right
now if I take out some profits just to be safe. Let me pull out my original investment
and then let the rest ride." We see that a lot. A lot of people talk about strong hands in crypto. It's important to remember that that's very easy when everything's going up. Everyone talks about strong hands
when the prices are going up. But in reality, it's a very hard thing to do when the prices are
going down because there's not a safety net. There's no safety net with crypto. We believe prices will never go to zero. And obviously, I wouldn't be doing this
if I thought that they would. But there's no line to where we say,
"No one would ever sell below this price." It can always be made an argument for everything.
And the interesting thing is, and I'll tell you
what I saw all throughout the bear market, was so many people said things like, "Man, if Ethereum got under $200,
I would sell my house and put the money in." Well, what happens is once it
actually gets down to that level, people are then scared. And they don't do that.
I'm telling you, I know so many people
and I have so many friends that said, "When this coin gets to this price, I'm going to go all in." But then it gets there and they're very, very scared. And you have to remember also the difference
between trading and investing. So for you guys that are trading on Bybit like we are,
you know, we talked about this morning on the stream, I got liquidated twice today. I'm trading. Now, of course, we made a lot more
than that in the account, so it is not that big of a deal. I mean, it's a big loss, but we're way
in the green, you know, with Bybit. The thing is though that trading is much
more emotional than investing.
If you look at cryptocurrency like
investments and you just say, "I have this amount of money.
I'm going to put it in. I'm going to let it ride." Then you're probably not going to have
nearly as strong of emotions. You might look at, you know, your portfolio dropping, but it doesn't really matter because you know
you're going to hold on to it no matter what or at least throughout this bull market.
We don't think it's over. But for those of you that are trading, it's much more emotional. Now, if you do want to trade
and you haven't ever traded before, you can do that on Bybit. You can go to
bitboycrypto.com/deals and check it out. And a lot of you guys are listening
to what I'm saying. What I'm telling you, trading is emotional.
It can be dangerous. If you're not careful, you can get wrecked. You could lose your money. That's a thing that happens in a speculative market. But I think the takeaway from all this, from
this entire video, is for you to get this point. The reason why we can make money with
cryptocurrency is because of the volatility. When we have these dramatic dips, we can be very confident in a bull market
at least that they're going to go back up. Now, one day, there will be a dip that will be the
bear market dip and it won't come back up. We don't think that will be until much later this year. But you're not to look at this as something
that's going to go up forever. When you do that, you take the wrong perspective. You have to be able to realize
that easy come, easy go. You've got to lock in profits. And the people that locked in profits kind of
started this, you know, the price dropping.
You know, there's something
to be said about. That's smart. We don't want everybody to go dump
at the same time, of course, but taking profits is a good thing. Just remember this. The prices will not go up forever. You have to realize that you can
dollar-cost average out. You can take a certain amount out every day
or every week or every month to make sure that you are locking profits
and setting them to the side because none of us know
where the top of the market is.
We don't know the exact top. No one's going to be able to call the exact top
other than just by random luck. So, the volatility is something that we like. And you can't be mad at it
when it goes against your trade. You can look for dips, but those of you guys that get too overly emotional,
too angry, too sad, too depressed, I encourage you guys to talk
to somebody about that. For sure. I see a counselor every few weeks. Obviously, we've had a lot of changes going
on here and I'm dealing with a lot of stuff. And it's something I would suggest
for you guys to do too. Nothing's wrong in my life, but just to have somebody to talk to,
somebody that can be a listening ear, for you guys, it may just be a
friend or a family member, but I don't ever want to see anybody
that's in the BitSquad get to a point where you get so sad that
you make bad decisions.
Just remember, trading is all
about human psychology, and when you start feeling down,
then that's a good sign usually that the prices could be moving up soon.
They count on you to feel down and sell. So I just wanted to have that
heart-to-heart talk with you guys because I know a lot of you are
dealing with a lot of stuff because of what happened this morning,
the biggest dump in Bitcoin's history, and so I hope I can just be a little,
you know, encouraging to you guys to know that we don't believe the market's over. We believe it will bounce back.
Maybe even by the time this video posts, it will have bounced back pretty hard,
but it couldn't drop as low as $40K. I don't think it'll go lower than that,
but that could be a bottom. It would– this is truly the giant correction that we're
going to get from that huge upswing we just saw.
But remember that volatility is your friend. You have to learn how to take advantage of it
and not let it take advantage of you. But drop your comments down below. Let me know what you guys are doing
during this time, during these dumps, to make sure that your mental health is good
and that you're making smart trading decisions. That's all I got.
Be blessed. BitBoy out.