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When investing in Cryptocurrencies, you will encounter blips, corrections, and crashes. Sometimes it is hard to tell what has happened. This video will explore all three and look at previous blips, corrections, and crashes. If you are new to Cryptocurrency, this is a vital video and will give you ideas that will take profits and avoid losses.
Hello and welcome. I hope that you are having a fantastic day today. We’ve got a great show prepared for you. I don’t know if you’ve been in the cryptocurrency industry or market for years, or if you’ve only been involved with it for days and weeks I got asked a question on Saturday from somebody that was brand new in cryptocurrency. And they asked me, is this a correction? And what had happened was on Saturday, we saw a drop in the price of bitcoin, but it pretty quickly recovered, not 100%, but very close to where it was before. And so I had to pause, I looked at the charts. And I thought, you know what, I need more information, I need to wait and see what happens. Before I figure out is this a blip a correction or a crash? So let’s get into it. Let’s talk about what is a blip? What is a correction? What is a crash when it comes to cryptocurrency, so I think you’re gonna find this incredibly useful, but let’s get into it. Now, this is my website, luminate crypto.com. And that is not what I was trying to do. Let me go over here, grab this one. luminate crypto.com is my website. I hope that you’ll visit us on the internet. If you do scroll down to the bottom, join our email list and we will send you private invites, as we have different cryptocurrency webinars and cryptocurrency online sessions so that you can learn more about cryptocurrency and we can have an online discussion about it. I think you’ll find it really, really useful. Our website and our YouTube channel is here to give you ideas to help you take profits and avoid losses. So like, subscribe and huddle. Now, I’m not a financial advisor, my background is not finance, my background is computer programming. So what we’re going to talk about today is not financial advice. I’m going to give you my opinion, I’m going to give you the way I think and look at things, I hope that you find that useful. As always, cryptocurrency involves substantial risk lost and is not suitable for every investor. Please read the rest of this paragraph. It’s great advice, no matter what you’re investing in, but it is written specifically for cryptocurrency. Now, was that a blip a correction or a crash? before we answer that, I want you to know I’m gonna talk about Bitcoin in particular, I don’t know why it chose that particular outline, I had this one selected. So actually, I didn’t have the green one, I had the orange one because orange is a lot more noticeable on the green. So I’m going to talk about Bitcoin today. But what we’re going to talk about applies to any of the other cryptocurrencies out there. The reason why we’re talking about Bitcoin is because typically when Bitcoin is green, just like you see from this diagram, this chart, all the other cryptocurrencies tend to be also in the positive, and when Bitcoin is crashing, everything else tends to crashes all as well. But when you’re trying to identify is any specific cryptocurrency encounter encountering a blip, a correction or crash, the same principles will apply to it as well.
Now, before I go on, I do want to let you know where you can find this chart so that any moment in time you can kind of get an idea of what is the overall cryptocurrency market doing this is coin 360 dot com. It’s coin 360 dot com and I use it a lot. I recommend it. I think it’s a good website, it gives you a very, very fast, very quick way of figuring out where is the cryptocurrency market at this moment. So at this moment, or I should say a few moments ago, this chart was screenshot and I wanted to show this too because Bitcoin just hit $40,000 a brand new all time high and it never seen $40,000 this particular chart is a five minute chart. And you can see that each one of these red bars and the green bars is five minutes of time. Now Bitcoin dropped from $40,000 all the way down to $36,000 at 10% drop in a matter of about 35 minutes. Wow, that was fast. The question that we have to ask though, is this a blip, a correction or a crash? And at the moment, I don’t have enough information? To answer that question, I need to see what happens after this, it might be a blip, especially if the price goes right back up here to the $40,000 price range. So far, ever since this happened, the price has been kind of hovering in this $38,000 price range. So it really depends if it if it stays at the 38,000, I’m gonna lean towards calling it a blip. If it drops more, I’m gonna call it a correction or possibly a crash, if it gets above the $40,000 price where it had just touched. In fact, 40,000 is right there. If it gets above 40,000, then obviously it was just a blip. It just was a temporary pause. People saw that Bitcoin hit 40 grand and they decided, you know what, I’m gonna take some profit, and they sold some or all of their cryptocurrency right at that $40,000 price point. And and then it was because of all the people selling when it hit 40,000 that it did this move? The real question is, is it what is it going to recover? from there? Is it going to continue down? So I’ve kind of hit that a little bit. Let’s go to the next chart. This is when that person asked me the question on Saturday. This is the 15 minute chart. And so this was Saturday, January 4 of 2021. And you can see the price tanked pretty rapidly. These are 15 minute ticks, tick marks. And so within an hour or two, it the price has dropped from 3000 33,500, all the way down to 28,500. And so it’s a it’s about a $5,000 price drop. That’s more than 10% in a couple hours period of time. Now, when the person asked me, is this a correction? I didn’t answer right away, because I wasn’t sure. I wanted to give it more time to see what actually happened, you can see that it kind of went sideways, right afterwards, it recovered a good portion, and then it started going sideways. But over Sunday, and then in the Monday, it went way past this, this price range here. And so it definitely was just a blip in the grand scheme of things. But sometimes to make these decisions, you just have to give it time. Now we’ve talked about what is the blip, let’s look at what is a correction. Now some people, especially in stocks, in stocks, they might call what I’m about to talk to you about as more of a crash. But I’m going to view more of a crash with cryptocurrency is as more long term and more dramatic than what we’re about to look at. so in this situation, this was back in March when the pandemic hit. And everybody saw the entire stock market and all assets crashed very, very rapidly. In just a matter of days. Let me get rid of that one. In just a matter of days, Bitcoin lost 58% of its value. And so when I think of a correction, I’m thinking it’s gonna drop 10% 20% 30%, maybe more. In this case, it was 58% in a matter of six days. So we’ve switched now to a daily chart. So each one of these red tick marks is a one day is one day of time. And so this outline red area is six days of time with a 58% drop in price.
Now, you can see that over the next few months, it recovered and passed up that pre previous price range, but it took two and a half months to do it. And so it took six days for the price to drop, the price dropped quite dramatically. And you can see the six days right there. 60 is for six days. And so to me, that’s more of a correction I think of more correction being a little bit more dramatic. And if it recovers, it takes a lot longer time period to recover. Now I say if it recovers, and the reason why I say that is you know there’s six or 7000 different I’ve heard quite a number of different numbers. I’ve heard him anywhere from 3000 to 7000 different cryptocurrencies out there. There’s a bunch of kryptos out there. You can see that by this chart here. Thanks A lot of crypto especially when you start getting into this section down in here, there’s a ton that, that cover that area. And with 1000s of cryptocurrencies out there, some of them are going to crash like this, some of them are going to take this correction and never recover. And so they really did crash. Not all cryptocurrencies are going to bounce back and price. And so it just, if you go out there and look at some of these other cryptocurrencies, again, this is coin 360 dot com, and you can just click on any of these marks, in fact, you can scroll with your mouse button, and let us zoom in. And you could zoom in onto some of these smaller cryptocurrencies. Or if you like, you can click on this link on this little icon right here, and it’ll give you a list, instead of this little graph. And by going into a list, you can, you can check out some of the smaller cryptocurrencies and you’ll find some, that on day one, they had this explosive price jump, or sometimes it waited three months or four months or six months after that crypto was introduced. But it has, at some point in its history, it may have this huge jump in price. And then it comes way back down and sometimes hits lows that are far lower. I mean, like, like goes from $20 or $50, all the way down to below a penny and stays at that below a penny for months and years after that. And so everybody who invested at the higher price invested up here. And it never recovered to that price lost a good chunk of money. And so when you’re picking different cryptocurrencies, you want to pick quality cryptocurrencies, don’t pick just any blue anything out, you know, out of the blue. Because people, a lot of people have lost a lot of money picking crappy cryptocurrencies. And I don’t want you to do that. So if you’re using etoro, or one of the other big exchanges, I would recommend for now stick with just the kryptos on that exchange. Most of the exchanges, especially if the exchange only has three kryptos, or five kryptos, or 25. kryptos usually are giving you the premium kryptos. And while those may not move as fast as some of the other stuff, you’re more likely to be safe with them. So let’s take a look at a crash. Now the mind thoughts on a crash for cryptocurrency are different than what somebody for the stock market would consider a crash You know, when you think of the 2008 stock market crash that happened over a course of days and weeks, and then it took the stock market months and years to get back to that previous high but with cryptocurrency and what I’m calling a crash actually took a lot longer. So you can see with Bitcoin in particular and again, I’m calling on Bitcoin mostly because when Bitcoin goes up most of the rest of the cryptocurrency market goes up. When Bitcoin goes down, a lot of cryptocurrencies also go down, but that’s not 100% there’s a lot of junk coins out there that tanked and never recovered. Anyway, I digress. This blue line here is what’s called the Bitcoin having
Bitcoin does this, some of the other cryptocurrencies do this, but not all cryptocurrencies have a halving. And what it means to have a halving is every time you see this blue line, so here’s the first blue line, second blue line, third blue line, that’s a particular date. And on that date, the amount of new Bitcoin created was cut in half. And so back in this area, Bitcoin was creating 25 new bitcoins every time a block was added to the blockchain. And in this section here, let me see if I can. It’s not letting me let me draw a new one. So in this section here, there was 12 and a half, sorry, the first section was 50. This section here is 25. This section here was 12 and a half, and then this current section, it’s not letting me shrink it. This current section right in here, we’re now down to six and a quarter bitcoins created every time a new block is added to the blockchain. And so the miners have had their rewards cut dramatically, but also the new Bitcoin getting created has also dropped by 50%. Now that is a forced scarcity that’s been forced into the Bitcoin market. And every time a new halving has happened, in the past, we’ve seen a year long Bull Run. So in this particular chart, each each tick mark represents an entire month of time. And, and from this edge where the blue line is, to this spot here, where the top of the green bar is, where it hit a new all time high is about 12 months. And you can see here that we have about the same thing about a 12 month Bull Run. And so in my opinion, and this is my opinion, not financial advice, I think we’re gonna have a similar situation where we go for another 12 months or so Bull Run, time will tell. But you can see after each having bitcoins skyrockets to a brand new all time high, and then it tanks to a new low. Now this dropping in price, just like the Bull Run took one year, this bear market also it’s taking about a year. And so that bear market there took a year this bear market here took a year. And in my mind, this is more of what a cryptocurrency crashes because it drops and loses a huge amount of its value. But it happens much slower over a longer period of time. So let’s zoom in this chart here represents this particular bear market. And let’s take a closer look at it, we can see that it hit a new all time high on December 17 of 2017. And the price that Bitcoin hit on that on that candle that I have highlighted was about 19,500 $19,800. And it after that it began dropping in price until it gets to this very last candle at the very end, where it gets all the way down to $3,122. And so it dropped from $20,000 to $3,000. That is a loss of 84% of its overall value. And that loss happened over 364 days. Wow, it’s one day shy of a full year. And so it’s kind of interesting, I don’t know why it took almost exactly a year. You can see during this bear market, that bitcoins still had some months where it showed some positive movement, I mean, we see some positive movement right there, where it started moving up, and then it tanks again. And then it moved up and then it takes some more moved up and tank some more until it finally hit that low of $3,122. So to me, this is a cryptocurrency crash, and it’s much longer term than what we’ve come to know from, you know, like the stock market and other markets.
I’m showing this to you for two different reasons. One, I want to give you my perspective of what a crash is. But two, I want to I want to give you a kind of a fair warning. Because I in and this is not financial advice. This is my opinion. But I think our current market is going to have a similar behavior. Here’s kind of what here’s kind of how I view it, you know, you’ve got supply and demand. And it’s kind of like a teeter totter. You know, you’ve got, you got a child on the left side, we’ll call that child supply, and a child on the right hand side and we’ll call that demand. And when the supply gets super scarce, like it does with a halving, it forces the price up because there’s fewer bitcoins out there. And then demand starts increasing because people are saying, Oh my gosh, look at how much the price went up. I want to get in on this too. And so that gets more and more people involved, until it kind of gets to a point where it finally just simply gets exhausted. And when it gets exhausted, that’s when it starts coming back down. And I think of it kind of like it’s trying to find that equilibrium, but after the halving, it seems to take it two years to get to the equilibrium the first year it tends to go up the second year it tends to go down. And then you’ll notice for the two years after the having, because having happen once every four years, and so the two years after each having its kind Like, okay, I found my equilibrium, and it tends to go sideways with a little bit of up action. As you know, the general trend of cryptocurrency the general trend of Bitcoin has always been in an upward movement. And some of that has just been the creation of new technology, you know, like the backed exchange, it took them four years to build the backed exchange. The backed exchange, if you’re not aware of it, is a joint venture between the company that owns the New York Stock Exchange, Microsoft and Starbucks, the three of them came together as a team. And as a team, they built an exchange a cryptocurrency exchange, called Ba, k k t, backed. That exchange went live about a year and three months ago, it was, I think it was September of 2019, if I remember correctly, that the backed exchange actually went live, the backed exchange is designed more for institutional investors. If you’re not investing a million dollars or more, I don’t think you can actually get on the exchange and trade. But they do have an app for consumers that’s quite interesting. that lets you purchase cryptocurrency right off of their app. So anyway, I’m digressing. I’m getting into subjects that we’re really not here to talk about. Let’s complete this. So I have written an algorithm that uses mind numbing math, that helps me a whole lot to be profitable with my cryptocurrency trading, you can copy all of my trades, it’s kind of like, you know, those commercials where they show you the new food gadgets and tell you hey, you can just set it and forget it. Well, it’s the same way when you’re copy trading, you can just set it and forget it. And you’ll automatically buy and sell kryptos, based off of the advice of my trading program, I worked two years to build a trading program, I’ve spent 1000s of hours perfecting it. I’m still tweaking it still trying to make it better because the cryptocurrency market is always changing. And so that out that trading program can always be improved. The training program uses mind numbing math in order to make buy and sell recommendations with cryptocurrency. So if you decide you’re interested, just go to this website on etoro.com slash people slash lumen eight algo trader, or you can also go to my website, I mentioned it earlier. And from my website, you can just click the etoro link right there. And that’ll also take you straight to
my copy trader page on etoro. Now at the moment, if you do not already have an etoro account, etoro is going to give you a $50 limited offer bonus. Now what makes this offer Limited is etoro lets me do this for 10 people. So far, I’ve had three or four, I have to double check here in a few minutes. I think we’re right still at about three people. But it might have increased to four people that have actually taken advantage of this offer. So I have somewhere around six left that people can take advantage of. And how do you get your $50 is pretty simple. You’ll use this link here to go to etoro etoro.tw slash two stdio m s and then you need to deposit $200 or more. And once you’ve deposited $200 or more than you want to copy trade mean with that $200. And by doing that etoro will give you 50 bucks for your $200 investment. So it’s a great way to give you a little bit of cushion when it comes to investing in cryptocurrency. So now this is not investment advice, but I think it’s a good deal. Finally, how can I be of service to you? Do you have questions? Do you have thoughts? Do you have comments? Leave them on the YouTube channel in the comment section below and I will get back to you. You can also leave them in the comments section on my etoro web page if you like. I’m here to help. I’m here to try and give you ideas to take profits and avoid losses. So let me know if there’s anything I can do to be helpful to you. In the meantime, I hope that you’ll like subscribe and huddle and do me a favor. Have a great day.