Episode Highlights:
- 00:10 – Why Does The Cryptocurrencies Market Crash At Time?
- 01:14 – Why You Shouldn’t Worry About The Cashes That Bitcoin Undergo
- 02:43 – When Is The Time For Investment In Cryptocurrency
- 03:19 – Analizing The Bitcoin Drops Peroidically
- 07:54 – Lessons Learned Prior To Bitcoin Crashes
- 09:26 – Anticipating Crashes Without Being Feared
- 10:32 – Reasons Bitcoin And Crytocurrencies Are Extremely Volatile
- 12:13 – What Happen When Crashes Coincide With Speculative Run-Ups
- 12:45 – Reason Why Bitcoin Crashes With Government Regulations And Hacks
- 13:28 – Bitcoin Has Always Recovered Historically
- 14:20 – When Bitcoin Crashes Can Be Avoided
- 16:21 – What Determine Your Buying And Selling
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Transcription:
Hey what’s up guys, I’m Dan again from CryptoCamacho.Com. Where each day, I teach you something about cryptocurrency and help you make more money in this crazy cryptocurrency revolution.
00:10 –Why Does The Cryptocurrencies Market Crash At Time?
Today guys wow, it has been quite a week, quite a last really last one or two weeks. We’ve seen some major crashes in the cryptocurrency markets. We’ve also seen some recoveries, in the market and Iwant to talk through that just a little bit because I want to make sure that everybody knows that this is normal andpar for the course guys. The crash thatwe just witnessed has happened multiple times in the past in bitcoins historyright.This time however, it wasn’t justBitcoin that crash. It was the entire cryptocurrency markets right, and why isthat? It’s because every cryptocurrency is ultimately tied back to Bitcoin right. Because the pairs that are traded on the exchanges, on Finance, on bit tricks, on politics like on all these exchanges.Most of the pairs that are traded are Bitcoin to an altcoin, Bitcoin to an altcoin right. They’re all tradedback into Bitcoin pairs, so naturally youknow when, when Bitcoin goes down, all ofthe other coins go down with Bitcoin because it’s all trading in the same kind of on the same substrate if you will.
1:14 – Why You Shouldn’t Worry About The Crashes That Bitcoin Undergo
So today like I said, I want to talk about the crashes, the recent crashes that we’ve seen with Bitcoin and with some of the other crypto currencies and I want to explain to you guys why this is nothing to worry about and this isyou know very, very normal and actually par for the course with not only cryptocurrency but with really stock markets in any market dynamics in general. Sorecently we’ve seen you know a high of$20,000 right Bitcoin really reachedalmost $20,000 in December at the end ofDecember and then it literally fell from $20,000 all the way down to let’s see about $11,000 which was a 43, 44% dropright that you could see right here. Thenwe see some recovery going on and most recently, just a few days ago starting onlet’s see January 15th there was a major crash right here againyou can see the percentage was about 36%.So not tremendously huge but if you compare it with the previous dip thattook placeyou know week before that on the 6thyou know from the top there from the 6th until that crash on the 15th were seen about 47 to 48% another about50% drop right so in the last month we’ve seen two very significant 50% drop so with Bitcoin and even alittle bit prior to that we saw about a25% drop right so these things definitely happen.
2:43 – When Is The Time For Investment In Cryptocurrency
And I want to show you a few examples of how these this has happened in the past and why you know you can expect it in the future and Iwant to give you some takeaways here on why this is important as you invest as you hold your cryptocurrency as you evenday trade your cryptocurrency why this is important what you need to look out for so that when this happens again you could be prepared you could take your money out of the market before it actually happens and then you could buy on the dips right on these low dips hereyou know if you would have bought just the other day and you would have sold at the top you would have made about 30% profit if you would have waited and sold where that is that today you would’vemade 23 percent profit right so pretty good pretty good margins there pretty good profit percentages.
3:19 – Analizing The Bitcoin Drops Peroidically
But let’s jump over to coin market cap and look at this chart. So this is a chart of Bitcoin forfrom October 1st 2014 to December 31st2015 right and you can see that there have been a number of equal if not greater drops that year in 2014 to 2015I guess really throughout that Octoberto 2014 to 2015 there’s been some significant drops right. So let me let mejust show you out how this works right.So at the beginning sorry, the end of2014 in November we saw a high of bitcoins price at $434 dollars, but thenall the way by the time we hit January15th again, January right the crash that just happened it happened in January aswell right so again not anything newthat we haven’t seen every single year since 2014 so let me show you. So like Isaid the top in let’s see in November middle of November we were at 434 at the top right. At the bottom in January, wewere at 196 so 434 – 196 that is atleast a 50% drop that’s more than a 50%drop right 434, 196 over $200 more than a 50% drop happened right there in 2014.
It happened again right, in November of 2015 so fastforward a year literally almost exactlya year we are at $468 per Bitcoin and we dropped all the way down to let’s see three let’s just get this right number at $311, so not quite the same but still about a 35,40% about 30,30 to 40% dropped again it happened at the same time. Let’s fast forward a little bit now let’s make this 2015. Let’s fast forward one year and we’ll make this 2016 and I just want to show you this bear with me here for just a moment 2016 12:30 okay this isn’t letting me do the chart but let me let me jump over to the quantity here so if we go to.All right guys so now fast forward to 2016 and let’s look at the drops that we’ve seen in 2016 I jumped over to coin I give you,because I was having problems with coin market caps website. So trusty economywill help me figure this out so we look at 2016 and in June we see a similar drop here right we see the top being at about $770per Bitcoin we see a crash of about 66% down to 65 six not quite so bad right but another,another pretty decent drop we see again another one right here in in January of 2017 right so last year at the exact same time around January right that seasonal time right after December we saw a big boom in December and we see another crash right.
This crash in 2016 sorry 2017 in January was about 36%again a pretty significant crash right fast forward keep fast-forwarding again we see a huge crash in 2015 I’m sorry 2017 in May and this crash was pretty significant right we see all the way it’s a 56, 57 almost 58% crash in May of 2017 guys. So this recently happened and it happened again in let’s see, in June just the next monthwe see another crash of 36 % and what am I getting at here? That this is not uncommon again we see a crash here let’s see how big is this crash 31% they’re averaging anywhere between 25 to 30 % all the way up to 60% I would say about, about 55 %t right. And it’s happened repeatedly over time you see a big run-up, you see a crash, you see a big run-up, you see a crash. Again same thing happened this year 2018 this looks bigger right because the prices are bigger they’ve gone up a lot more so the graph looks bigger but the actual percentage of drops are very, very similar to historically to what they’ve been right but like I said the most recent one 44% dropped from the high and then just the last one the other day about 46, 47 % down from the high right. So, what am I getting at here guys? This has happened in the past at multiple times right, probably a dozen times Bitcoin has crashed this time it was a bit bigger because all of crypto currencies crashed and historically we can go through we could kind of do the same thing and what I want you guys to get from this is that this happens very,very periodically frequently in the cryptocurrency space so you should be expecting it.
7:54 – Lessons Learned Prior To Bitcoin Crashes
So what lessons can we learn from this market crash from the last time around? And how can you prevent this from happening again? So these lessons I want to go over very quickly with you guys because I think it’ll, it’ll help you think about as you’re holding cryptocurrency as you’re buying and selling cryptocurrency. How you know you can anticipate these crashes? How you can capitalize and actually profit from these crashes that are going on?
So the first lesson that I want to impart with you guys about the crash that recently happened is that:Crashes are a normal part of market correction. Think about it, when you have a run up like we’ve seen and I can just show you. We had a run up you know from November 15TH like the beginning of November. Let’s see okay from the beginning of November all the way through December. We haven’t run up of 272%, almost a 300% run up. And you see a correction right, of 40% here and 40% here. So an 80% correction on a 300%profit right. That makes complete and logical sense, Run ups cannot forever,they have to correct themselves.So they run up and then they do correct themselves in the base of where it equalizes is actually stronger than the previous base. Again if you look back at the charts, every crash that we’ve seen has led to a higher and higher floor for Bitcoin right and you can see that all the way up right. It continues to be up now this is the floor $11,000 right now seems to be the floor and it will probably see another upward trend will see another crash right. So that is to be expected.
9:26 – Anticipating Crashes Without Being Feared
Number two crash it crashes should be anticipated and not feared.When you see a massive run up like this you can almost expect a crash to be inevitable. I mean it’s coming, it’s just when is it coming right is it going to come here, is it going to come here, is it going tocome here, come here, come here. You don’t know exactly when the crash is going to happen. But the crash will eventually happen if the run-up is large enough so what I’d recommend is, when you see run ups that are higher than 30, 40, 50 % that is a sign that you need to be actively watching for the drop, for the panics, for the sell offs right that’s common sense, common knowledge and any market that you do that and even if you don’t sell right at the top and I’ve made this mistake myself you know a few times.If you don’t sell right at the top, if you sell halfway down or 3/4 of the way up, you know you’re still going to come out on top of this significant profit. So don’t always strive to sell at the very,very top because what happens is the crash happens very, very quickly right and often when you’re trying to sell atthe top you’re going to end up selling downyou know lower than the top anyways because the crash is so, so quick so that’s number two.
10:32 – Reasons Bitcoin And Crytocurrencies Are Extremely Volatile
Number three, bitcoin and cryptocurrencies are extremely volatile. Most people would say that’s a bad thing, that’s a dangerous thing, not me. That is actually a fantastic,fantastic thing you know why? Because you can buy on the dips guys, if you were to buy here, if you were to buy here, if you were to buy here, here, here, here on any of these dips if you would have bought anywhere within the range right, anywhere within here, anywhere within here. Let’s see anywhere within here, anywhere within here, you would have come out up on top and made money.
And that’s what I’ve been trying to tell with my bass training methodology is that you buy on the dips guys and when you buy on the dips you’re buying at the low you’re buying at a prime time to buy and following my method again look if you were to follow the charts and you were to mark that as a bass and you would have said okay that’s my bass well the next crash which was right here you could have bought anywhere right here and you would have still come up past the bass same thing goes right here.There was another crash right here’s the bass here, the bass here is the recent crash.
We’re way below the bass righthere do you want about anywhere right here you would have already made all of your money back and then some right and this is likely going to go back up and they go down but the next time there is a crash mark this down as your bass this is definitely a bass right this is a $9,000 price point for Bitcoin. It’s the floor that people will not let it go below at least right now right so next time the price does go below $9,000 if it does it’s going to be an awesome time to buy same thing here guys, so that’s,that’s reason number three.
12:13 – What Happen When Crashes Coincide With Speculative Run-Ups
Number four reasons; number four is that crashes coincide with speculative run-up. So we’ve already kind of touched on that a little bit but if you see the run ups here right I mean speculative run-up. Why did this run up? There’s a, there’s a variety of reasons why this ran up mass adoption was taking place. The media was publicizing Bitcoin it was getting into the mainstream news, mainstream media that’s why we saw this big, big run up. It was speculative, it was fear of missing out people didn’t want to miss out on it so they’re buying and buying and buying and buying and buying and what happens after that we see a crash boom. That’s point number four.
12:45 – Reason Why Bitcoin Crashes With Government Regulations And Hacks
Point number five,crashes coincided with government regulations and hacks and so forth. If you remember back to, I think it was acouple years ago Mt. Gox crashed went out of business right. We saw a huge dip that was one of these dips recently Bitcoin if you search for Bitcoin crash you’regoing to see that the reasons why this week’s Bitcoin crash was all about fraud and regulation right. There was hacks, there were rumours of South Korea banning crypto currencies there were new government regulations coming out about how the US should handle cryptocurrencies all of these different things have been coming out which has led to fear uncertainty and doubt too but right and that’s why these crashes have been happening. So that’s number five.
13:28 – Bitcoin Has Always Recovered Historically
Number six guys, historically Bitcoin has always recovered now will this always be the case I don’t know I don’t think it will always be the case but I do think it will be the case for at least the next year or for the you know force in the near foreseeable future. And actually today, there was a professor today I think it was a Yale professor, let’s just see and I think he said that bitcoin is definitely a bubble but that bitcoin could be here for a hundred years but it’s more likely to totally collapse so he’s this guy from Yale is saying you know bitcoin isdefinitely going to collapse but itcould be here for a hundred years so that doesn’t really tell me anything right that’s like me saying I’m going tobecome immortal with genetic technology but it could be in a thousand years like doesn’t tell you anything right. But what it does tell me, is that historically bitcoin has always recovered and likely it will in the near fore see able future right and that kind of confirms that for me.
14:20- When Bitcoin Crashes Can Be Avoided
Number seven guys, crashes can be avoided they can be. When you see a run-up that is bigger than I said like you know 30%,20%, 30, 40, 50% when you start getting into those ranges you know that is a clear indication that we’re seeing a run-up right I mean even let’s see I mean you can even see some, some red let me go back to the chart here you can even see some red here on the run up you do see a dip right. So from the last run,up let’s just say start here.if you know right here we see a 153% run-up okay there’s going to be a correction boom there’s the correction right again we see from this we see let’s see if I if I look at the charts a little differently here’s another correction so you just can’t see it quite so well another correction here another correction here so they are all over the place and you can avoid them if you watch them you do have to watch for the charts you do have to know a little bit of technical,technical analysis but you can certainly watch them and one little trick that I use to watch for crashes is when the stochastics are starting to go down let me uh let me get into like more of a modern chart here when the stochastics are starting to go down and let me show you what I’m talking about here. You can bet that there is going to be a crash. So see here’s the stochastic here it’s going down,down, down, down, down, down, down and there’s a trend going it down right it’s hard to always see this but you can see it if you look in these charts you can see it there’s been a downward trend here and you know we had enough now it’s starting to go down a little bit right so you can see it in the stochastic so you just need to know how to read them a little bit.
But anyway, I wanted to make this video, to let you guys know that the crash we recently saw is not out of the ordinary.It’s typical don’t believe everything you’re reading in the news that bitcoin is going to collapse everything is over;cryptocurrencies is over, it’s not the case. This is very, very common it’s happened the same time for the last like three or four years in a row in December, January you know February timeframe and we’re likely to see another one this year right. We’re likely to see another couple this year so be watching for them.
16:21 – What Determine Your Buying And Selling
Sell when you’re high. Buy on the dips,when everybody else if selling and panicking and running and there’s blood in the streets what do you do you buy when everybody else is greedy meaning when the prices are surging up and everybody else is greedy and they want to make more and more and more and more money you need to sell that’s when you need to get out. When everybody is panicking and selling and running away and saying everything you know the hell is about to freeze over that is when you want to buy I think Warren Buffett said that the best right when there’s blood in the streets you want to buy. Keep that in mind guys.
I’m Dan from cryptocamacho.com if you haven’t subscribed please subscribe to my YouTube channel and I will give you daily updates and help you make more money in cryptocurrency. Thanks guys. Talk to you later
