Episode Highlights:
- 00:12 – Examine Bitcoin Chart
- 01:29 – Chart Analysis
- 04:28 – Bitcoin Chart
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Transcription:
Hey guys what’s up? Its Dan again from cryptocamacho.com and today guys I wanted to just make a quick video to show you a chart that I’ve been looking at, and it’s been pretty fun for me and I’m curious what you guys think about it. Let me jump right into it.
00:12 – Examine Bitcoin Chart
So, here’s the chart. So, this chart has been floating around Twitter and another kind of social media outlets, and I find it actually a pretty interesting, or intriguing chart for a number of reasons and I think it’s actually fairly accurate in a lot of different ways. And I’m curious where would you guys buy? Obviously, you’d probably buy it the smart money right? The smart money is where everybody wants to buy, but how often do we all buy it right there? I mean the fact that you’re watching this video right now, the fact that you’ve been following me on YouTube, the fact that you know anything about cryptocurrency is you know kudos to you. Kudos to you for knowing about this industry, knowing about cryptocurrency, knowing the potential of cryptocurrency, you know kudos to you. And so, if we were to look at Bitcoin, and other cryptocurrencies, it’s very important to always keep this chart in the back of your mind. Keep this in perspective; keep it in the back of your mind, because this happens over and over and over. It kind of repeats itself over and over and over and I’m going to show you exactly how in just a second here. If you look at the majority of cryptocurrency charts not all, but the majority of them they will have some sort of pattern like this. And actually, there’s a pattern it’s almost exactly like this going on with Bitcoin right now. And so, I’ll show you that in just a second here, but let’s just go to this chart really quick.
01:29 – Chart Analysis
So, the first step is smart money right. So, what is smart money? Smart money is really when insiders institutional or investors, you know hedge funds people with a lot of money, a lot of inside knowledge about what’s going to happen will put their money in to a market right. They know that something is going to happen in a market; they know maybe you know there’s going to be an announcement on Bitcoin, there’s going to be an announcement for you know some revolutionary thing that’s going to happen in Bitcoin. They know this before it actually happens, before it’s announced. And so, the smart money, it’s the people that have this foreknowledge of what’s going to happen for like insiders right, to get their money in as soon as possible. Usually, it’s stealth that’s why it’s called stealth phase. Not too many people know about it, it’s usually you know held pretty, pretty secret pretty hush-hush. So, people don’t know about it. So, the early investors can get in early. And so, that’s really at the beginning here right. Second phase is really the institutional investor. So, once the smart money has got in there, you know the people the founders of companies, the people are actually setting up companies, the people that are actually, you know industry experts things like that. They’ll start talking with the institutional investors and things will start to happen. Institutional investors will then put their money in the markets right. And you’ll see kind of an uptick then, a downtick is like a little trap. Then the media will start to get a hold of it and then once the media gets a hold of it right, then its game over right. Then the public starts to know about whatever you know the token is or the cryptocurrency is and what’s happening and when that happens, the price kind of just shoots up through the roof right, because you have smart money, you have institutional investors which are really quite a significant amount of money. And then you have the public just dumping money in you know once they’ve heard about what’s actually going on. We go way, way, way, way up to the top and then I’ve done this myself and I’m sure you guys have too. But if a stock chart or a chart is rising, you know people are really excited at the beginning. They’re really excited I’m going to make a bunch of money because it’s going up, up, up then it gets a little bit higher and greed sets in and people think oh man I’m going to make so much money. This is going to go up forever. It’s just going to keep going on forever. Then we get even higher delusion starts to set in a little bit like how I felt when Tron happened, when Tron went through the roof, I went through this exact cycle right here.
I was at the green stage we’re at the very, very top and I was like this is insane. I’m making so much money and this is just going to keep going and going and going. I hit that delusional step right; where I was delusional. I was like this is going to go forever in reality, it doesn’t actually happen right. When you then eventually you hit a top and then it starts coming down and typically what happen is you’re in denial. You’re like no this can’t happen this is exactly what I did on Tron right, It was coming down a little bit I thought no this is just a little leg down, it’s going to go back up. It’s going to go back up, it didn’t. I was in denial, it kept going down, kept going down, kept going down and it’s stopped right. And then it bounced back again I said oh great this is another leg up, it’s going to bounce again and it didn’t right. It kept going down and down and down over a period of time to where it returns to normal. A lot of people then lose money, so forth and so on. And if you look at this chart, I find it fascinating because this is exactly what is going on in Bitcoin right now. Let’s take a look at the Bitcoin chart.
04:28 – Bitcoin Chart
So, okay let me let me close out of this really quickly. Okay so, here’s the Bitcoin chart I want to try to share this side by side because this is Bitcoin in the last year. And this is like almost to the tee what has happened with Bitcoin in this chart and I find it incredible right. Let me make this a little smaller hopefully I can fit this on here. I don’t know if you can see this very well, but let me get rid of this all right. Let’s try this again. Let me make this a little smaller oops sorry bear with me guys. Sorry make this a little bit smaller all right. So, look at this yeah I mean if you just see it’s like it looks almost exactly identical. I mean you got your big you know tail right here, which kind of you know which happens right here. All that tails then you see the little dip, the bull trap which happened right there which is right here right. The bull trap happened right there, and just this chart was probably modeled off a Bitcoin because it’s like almost exactly the same, but then you see the big ramp up you see the public and that’s what happened. I mean I got a hold of it the public was going nuts. They were in a mania they were just buying, buy and buy and buy and you could see I bought a ton up and down. You know had the whole way I yeah. And then okay then you see a drop, you see that bull trap right here return to normal.
Everybody’s like okay everything’s great. Then it goes down, down, down, down, down hit despair everybody was freaking out. They thought the world was going to end right over here. They thought the world was going to end and despair he lost all their money and then we start going back up and that’s actually what’s happening right now. The prices Bitcoin is going up right now. So, anytime guys you see a chart like this, and Ethereum you know you could look at and I’ll go to Ethereum show you something very similar. Let me go to a year it’s not going to look exactly the same, but man it looks it looks very, very similar right. I mean very similar up there’s the lag up again down despair and there’s the trap. And so, I just thought it was I just wanted to make a video to give you guys this and always think about this when you’re trading, because it can be a helpful guide to you guys when you’re trading. You know to see what stage you’re in; I mean if you’re just going up and up and up just know that it’s not going to last forever and sell at the top. I would even recommend selling in the greed phase, because you never know how long it’s going to last. Don’t be fooled by this return to normal, if we see a dip after a big, big spike chances are, if it’s a big enough spike you know over 50% chances are this is going to be fake. It’s going to be a bull trap. And it’s going to fall below that.
So, just keep that in mind and just know that as you’re going through just know these things are a possibility which is why I made this video. Hopefully you guys find this useful? Hope you find it interesting? I’m Dan again from cryptocamacho.com and I will talk to you next time. See you guys.
