Bitcoin Price Crash Or Normal Pullback? | prima.tv - live on-line
Grab my free Bitcoin basics course here: http://chrisdunn.com/bitcoin-basics Bitcoin recently had some big price moves. The high volatility can be scary, and in this video I explain why bitcoin's price is so volatile. ===== Disclaimer: I'm not a fina...
Grab my free Bitcoin basics course here: http://chrisdunn.com/bitcoin-basics
Bitcoin recently had some big price moves. The high volatility can be scary, and in this video I explain why bitcoin's price is so volatile.
Disclaimer: I'm not a financial advisor or super-smart TV pundit. I don't make recommendations to buy or sell anything. In fact, don't listen to anything I say.
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After gaining about 30% over the past couple of weeks, Bitcoin lost over $250 in value in 48 hours...
And this caused a major flood of emails, tweets, and calls from people freaking out asking my thoughts about Bitcoin.
Naturally, I have some fairly strong opinions about Bitcoin and why this crashed happened...
After becoming the top performing currency for 2015 and 2016, Bitcoin had a rough pullback the first week of January.
Thankfully, this is very predictable if you understand my 7 steps of a market boom-bust cycle...
1. A market enjoys a massive bull run. The bigger the gains the better for the hype cycle. It's common for Bitcoin to see gains 100% or more in just a few short weeks.
2. This attracts media attention. All the media outlets will jump on the bandwagon and compete to be the source that pumps the positive news the most.
3. Investors and traders think it's a productive use of time to watch networks like CNBC to make their investment decisions and end up buying based on the serious-looking TV pundits' opinions.
4. The market blasts off in extreme parabolic fashion causing even more late investors to jump in the game.
5. Eventually, buyers dry up when there's no one left to buy. Some people understand they might be the "greatest fool", and begin to sell.
6. People notice price starting to fall, and end up selling quickly, causing the market to over-correct. Some investors who chased the top end up panic selling at the bottom. Instead of buying low and selling high (like they inherently know they should do, they end up doing the exact opposite).
7. After everyone has panic sold, the market stabilizes. In Bitcoin's example, it reaches new highs after every major boom-bust cycle.
And the story repeats...