WARNING! BITCOIN FUD ALERT & Danger to Crypto Investors
Im michael and in this video were going to look at bitcoin the new all time high at 69, 000 and now almost a 10 percent fall just in a matter of hours. But first i will remind everybody that everything i say is general information. Only nothing i say should be considered as financial advice because im not a financial advisor everybody must trade and invest at their own risk. In my previous video, i looked at the signal for a market top for a cycle top, but we see that mass euphoria, the hype and emotion that comes in as the market moves away really quickly and now ive got this scary. Looking chart up on the screen. Do i think history is going to repeat like it did in april well in this video im, going to go into a little bit more detail with what i think is going on in the market right now now, over the last few days, theres been a lot Of energy excitement enthusiasm because weve been hitting all time highs in a lot of the majors bitcoin ethereum and a bunch more, and what that means is that anybody who has ever bought bitcoin, ethereum or any other market in an all time high and had never sold It means theyd be showing a profit, so theyre, rightfully happy, especially if they bought at the previous top and now theyre, only just showing a profit after months of holding a losing position so being a highly emotional and energetic time in the market.
This often leads to erratic behavior and, i think thats, some of what were seeing right now. Weve got some china fud creeping back in and weve seen this before. We saw it in september. We saw it in october and now were seeing it again in november, and what people tend to do is theyll look for any piece of evidence, thats going to fit in with their bias, so people are starting to think the markets too high now, because weve dropped Back below the old all time high, whatever the case may be, theyre going to find reasons to look to sell their position, especially if they have just got back into profit and they sat through a loss. They dont want to be sitting through another loss again for months at least thats. What they think is going to happen and hey. Maybe it could happen, but this is what leads to the irrational behavior and people fearing and getting panicked out of their positions based on any bit of news that pops up, maybe the news is valid – maybe its not im not here, to make a judgment on that, But what ive seen happen with over my 10 to 11 years of trading and investing is the pros. The institutions will often use big news when the masses are highly emotional and use it to their advantage. I mean the most recent example is september when the china fired, the evergrande crisis was really in full swing.
The market fell, most people panicked out, thinking that were going to go back down to 30k or lower, whereas the market actually bottomed, institutions and smart money were buying up, as bitcoin was around 40 000 bucks and other crypto. That was showing a very similar pattern and thats what allowed the market to move up so easily from late september into october. So is this another situation of the institutions and smart money taking an opportunity from the news to shake people out of their investments? Scare people get them into fear selling, so they can buy up some more. You know thats anybodys guess, but what i will say is that were up almost two months from the low in september and four months from the low in july and markets dont go up in straight lines. They kind of go up in steps when they do go up in straight lines. It can be a bit of a danger sign, but when they go up in steps its building strong foundations. Now i have recently put a video out called crypto bull market. The only video you ever need or something along those lines, and in that video we look specifically at what we need to maintain a bull market and although people think we need higher prices for a bull market. Yes, that is true, but the most important things is higher bottoms and were still seeing higher bottoms right now, so i dont see any reason to be panicking out of any longer term positions, at least in my opinion, and what im doing so? Yes, the market is falling, but as of right now, i still think its just a healthy correction that the market needs after being up for so long, and if we do zoom into the daily chart, we can see that it did go a little bit vertical quite Quickly but it has to be read in relation to the overall market structure, and by that i mean this vertical move that im talking about did take place just in the last few days, basically going straight up to 69 000.
But if we look at whats been happening before, then we have been making some pretty steady climbs along the way, and it just looks like it is just a little bit tired or at least overbought and now its correcting to find another base. And the other thing worth pointing out is that were up about four to five months from the lows that took place earlier this year. Whereas if we looked at some similar situations that maybe were going to see something like april again, have a look at how long it was running up for before putting in this major top and huge correction, itd been running up for well over a year. So were not even running up half the amount of time as we did last time, so while we are seeing some lower prices, at least as of right now, in my opinion, it still just looks like a healthy correction that the market needs to shake out. A few of the week holders, so we can see who the strongholders really are and when the next base of support and value comes into the market, so whats. This big scary, looking chart up that. I have on the screen. Well, now that the market started to fall and we may go down for another few days or so i can assure you that the bears are going to come out of the woods and start spreading, fear, uncertainty and doubt or fud as its also known as are Going to fudd people out of their positions, why do they do this? Well fear sells it gets the clicks just turn.
Your news on any news around the world – i can assure you – will have about 80 to 90 of the stories are going to be negative. For some reason, we are programmed to be attracted to negative news, just thinking about a car crash, how many people slow down to have a look at the car crash. They want to see. Whats happened, something horrific and they want to know what has happened. They want to see it news sells on this, it just happens everywhere we go and its no different in the markets. Fear will get clicks and attention and online thats what its all about everybody wants your attention and, as it goes through evolution, fear means were in our fight or flight mode blood, rushes away from our brain and into our limbs back from the cavemen days, when we Had to flee from something, but now it happens in different forms, it happens when were trading or investing the blood will rush away from our brains were not thinking clearly and were going to click that button that we shouldnt be clicking against our rules and our plan. Thats, why its so important have a plan ahead of time that way in the heat of the battle, we can go back to our plan and remind ourselves what we should be doing instead of what we feel we should be doing, because our feelings can often be Distorted when the markets are highly emotional and irrational, so while history doesnt always repeat it can rhyme, but do i think its going to rhyme something like last time in april compared to now? Well, i mean anything could happen, but i just dont see it based on where i think the market structure is at.
But having said that, it does look like we are in for a little bit of a correction, so well just see where the support comes in. I always have markers in the sand to let me know if im right or wrong validate what im thinking about the markets and that previous video i was talking about. The only video youll ever need do. Go back and watch that after this, because thatll show you the things im looking out for to either confirm or invalidate my thoughts on the bull market and once again having a plan is so important. Im, never scared to exit a position at a profit. I got crucified talking about crypto.com and why im selling i was talking about selling around here on this bar. Obviously it did move a bit higher, but now its dumped back below so im happy to protect my position and take some profits out of the market as they move away. If its in my plan to take some money off the table and reduce some risk ive. Just got to do what my plan says, and this is all the planning that takes place before getting into the market, so im not swayed by my emotions or the news, or anything like that in the heat of the battle. If you do want some help, putting a plan together, jump on board at the investor accelerator check out, tia crypto.com for more information, as the market still is unfolding, like im, saying i dont think were in for another big crash based on the market structure, based on Where everythings at so i just did want to get ahead of the fud and the fear because im sure, no doubt its going to be popping up, people are going to be drawing charts and duplicating them and projecting forward saying this is whats going to happen.
And while some of them may have some validity, i just do caution you to stay away from the fud and the doubt, because if you had a plan to buy bitcoin and hold for three to six months, why are you looking at an hourly chart or a Daily chart, when you just bought a week ago, it doesnt fit in with your plan. So all history can repeat: if it doesnt repeat it often rhymes, and there are a few similarities between the april top and right now, if bitcoin does hold above some of its significant lows, like the ones at 40k or the ones at 58k. What thatd be telling me is that the pattern isnt repeating, if were not getting the repeating pattern of the big correction, like april may maybe were going to be doing the opposite. Thatll just be building a case that this market is even stronger than a lot of people realize so lets just keep watching those lows and then looking out for the hype and euphoria, which i dont think weve seen yet on a big enough scale to call a Crash if youre interested in some of the things ive been talking about on this channel, and you want to know more or score yourself, some bonuses check out the links in my description below.