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I have created more than 250 videos on Cryptocurrency. If you were going to watch ONLY one video, this is the video I would recommend you watch. This video will dig deep into a secret the wealthy already know about Bitcoin, but many people do not know. If you know this secret, you could explain why Bitcoin/Cryptocurrency goes up so fast and comes down so quickly. At the end of this video, we will share a secret to help you avoid losing up to 84% of your Cryptocurrency investment. Do not miss a second of this vital information. Our videos will give you Cryptocurrency ideas to help you take profits and avoid losses.
Transcript
Hello, and welcome. I hope that you are having a fantastic day. Today, we’re going to talk about bitcoins secrets. Now, these are secrets that a lot of the wealthy already know. And that is why they’re investing in Bitcoin. I want you to know what they know because you may come to the same conclusion that they did when they found out. So let’s get into it. Today’s video is going to be fantastic. Now, this is our new website, and I hope that you’ll go and check it out and take a look at what we’ve built here. You can find it at Lumin8 crypto.com. As always, we have our video channel. Our YouTube channel is here to give you ideas to help you take profits and avoid losses. But here’s the kicker about our website, go to the website Lumin8 crypto.com. and scroll down to the bottom of the page there. You can give us your email address because we have some secret online webinars coming up in the latter part of January that you don’t want to miss out. And the only way to get your invite is to subscribe to our email list. So I hope you’ll take a minute. Go to Lumin8 crypto.com. Subscribe to the email list. I think you’ll enjoy the webinars we have planned. Now, I need you to know that I’m not a financial advisor. This is not financial advice. This is my opinion. I have 20 years of computer programming experience, but I don’t have any background in finance. And therefore, you want to take my advice with a grain of salt. And go and do your research and come to a decision for yourself about what you think of cryptocurrency and whether or not you’re going to invest in it. For the rest of this paragraph here, cryptocurrency involves a substantial risk of loss and is not suitable for every investor. I recommend you take a good look at this paragraph. Take it seriously. Because we want you to be safe with your finances. And we don’t want to see you get hurt or get wrecked. That’s really what our YouTube channel is about is to help you take profits and avoid losses. Citibank recently came out and said that they think Bitcoin will pass $300,000 by December 2021. That’s a year from now. Now, this was a report that was supposed to only go to their wealthy investors. And this report was exclusive. We want to ask What kinds of things do the wealthy investors know that have encouraged them to consider that Bitcoin is going to hit $300,000. Now, based on the price of bitcoin, when this report was written, that would have been a 30 x increase. Bitcoin was around ten grand at the time that that report came out. And so from $10,000 to $300,000, is a 30 X is 30 times your money. Now, Bitcoin has already made some very powerful moves. And we are currently hovering somewhere around $41,500. Today is January 8, it’s currently 12:12 pm Central Standard Time, and I haven’t checked the bitcoin price in a couple of hours. But the last time I checked, the price was somewhere around the 41,540 $1,100 price range. The reason I bring up this report now I’m not I was not able to get a copy of what was in this report. But the information I’m going to provide with you today is the kind of information that that large institution in that wealthy people are using to make decisions about Bitcoin and cryptocurrency. But we’re going to kind of go back to school for just a moment, and we’re going to talk about a business principle about supply and demand. Now, the supply and demand principles we’re going to look at really briefly may not be in some of these reports. But if you’re if you have a master’s in business, if you have a background in business, supply and demand is always talked about supply and demand. Now what happens is Depending on the product, there’s a lot of different products out there. And sometimes the supply and the demand are going to influence the price dramatically. You know, when you think of real estate, you can go to some places in the country, and the real estate goes up in value by 5% a year, 2% a year, 7% a year, the amount of increase in real estate in certain parts of the country is very, very small. But if you were to go to say the Hamptons, and you were looking at maybe a million-dollar house, or a $2 million house this summer, in the third quarter of 2020, the price of those houses went up 46%. In three months, prices increased 46%. Now, what is it that made those prices go up so much? It’s the combination of supply and demand when dealing with the supply of real estate in the Hamptons. I know agents like to talk about the supply being the houses that are for sale. But one of the things that you have to consider with the Hamptons, in particular, is they’re landlocked. There’s no more land they can build on there. It’s not like you’ve got acres and acres of empty fields. When you look at real estate, areas that have acres and acres of empty fields are usually the areas where the price is the cheapest and areas where they have no more land that you could build on. If you want to build something new, you almost have to buy a property with a building already on it, knock that building down and build what it was that you had a vision. And when you’re talking about a property that’s in an area that has a very high demand, then it is going to find a very high price. And so we have the supply and demand on kind of a balance being here because there’s a balance between the two. And that balance is the end resulting price. When supply goes down, and demand goes up, the price will go up. And if supply goes up and demand goes down, the price will go down. And so as these two moves, sometimes they move may move in opposite directions, causing the price to the be steady. But they could move in the opposite direction. I mean, both move in a direction that makes the price go up. And when you see both the supply reducing and the demand increasing, you can see price changes extremely rapidly. Let’s take another look at another area. Bitcoin and cryptocurrency are often compared to gold. And what is it that makes gold scarce? Think about it. Why is gold scarce? Why is gold so valuable?
Well,
it’s desirable as a metal for jewelry and other purposes. But it also is tough to find. If you’ve ever watched that TV program Gold Rush, you’ll see people out there that are mining for gold, and they go through tons of dirt. And they run that dirt through machines that wash the soil to separate the dirt from the gold. In order for them to find gold, they have to wash tons of dirt. The only reason they do that is that they can make money doing that. If they had to go in the hole, they would just shut down their minds and stop mining. But because they can be profitable, they will continue to mine. In fact, when the price of gold does drop, you’ll see smaller gold mines or less profitable gold mines shut down. And when the price of gold goes up, then even the big mines will ramp up their production and trying to get more gold out of the earth. And so so there’s kind of an equilibrium built into gold. Because as the price increases, so does the supply. And so people start bringing more gold out of the earth, and that tends to kind of equalize the price of gold. Now historically, gold does seem always to go up. And it has to do with this combination of supply and demand because, ultimately, that’s what causes the price. When the price is out of equilibrium, it will either move up or down. When the price is going to when the supply and demand has a net gain in it’s you know, a combination of supply and demand, then we see the price of gold go up and vice versa, we can see the price of gold go down. And so that’s kind of what drives the price of gold. But you know what, the same thing drives the price of bitcoin. Many people don’t realize that Bitcoin goes through what’s called a halving once every four years. And so what this having does is the people that are out there creating brand new Bitcoin, they decided to call them miners. So when these Bitcoin miners are out there making new Bitcoin once every four years, the amount of Bitcoin that they get on an annual basis is cut in half. Now, think about that for half a second. It’s based on a yearly basis. It’s not. If there are more miners out there, it doesn’t matter. It doesn’t change the supply. If there are fewer miners out there, it doesn’t matter. It doesn’t change the supply. The supply is at a fixed rate. And that fixed rate will happen regardless of how many miners are on the network. So the supply will stay somewhat constant, but that supply gets cut in half every four years. This represents the four years up to November 2012, which was the first Bitcoin halving and the supply in this time period was about 50 bitcoins every time a miner added a new block. And so blocks are generated roughly every 10 minutes. And so there were, you know, 1000s of Bitcoin created during that time. And that time started around 2008, 2009, when the Bitcoin networks first came live in that timeframe. It took four years before they actually hit the first having now. This is the time for after the first having before the second having. At this particular time, miners were getting rewarded around 25 Bitcoin It was 25 bitcoins. Sorry for the pause. I knew the number. Still, it just eluded me for a second.
So here are the miners who got 25 Bitcoin. During this time, the miners got 12 and a half Bitcoin. And now with the new supply and demand. In this timeframe, you can see that this started this blue line is May of 2020. miners are now getting six and a quarter Bitcoin. And so built into the program for Bitcoin, the supply is cut in half every four years. And this is its part of the program. So it’s not anything that somebody can do to adjust it. Because the way they’ve built that particular part of the code is it’s permanent. And it would require all of the miners out there to agree to make a change to that. Now, that particular part of the program also determines the maximum amount of Bitcoin that can ever get mine. Because eventually, you get to a point where the miners are getting zero for every new block, and when that happens, there will be 21 million bitcoins in existence. Today, there’s 18 million Bitcoin in existence. And so, every four years, the miners are getting their supply cut in half. And that’s part of the reason why we see the bitcoin price skyrocketing.
You can see here that after every single havening having I said happening, but no it’s having you can see that Bitcoin went on a bull run right after it had a halving where the supply was cut in half, the equilibrium was upset and the result of the equilibrium game being upset is the price went up. Now you can also see how the price came back down in these red parts of the chart. And so the price did come crashing down. Now during these gains, if you go all the way back here to the previous low price, the lowest price between the the halvings you’ll find that that low price is somewhere in this ballpark. I think it’s that red tick mark right here. The the difference in price between the bottom of that red tick mark and the high price of 20,000 from December 2017 is 100 X and I want you to get that for a second. It’s 100 times your money. So for every dollar you put into bitcoin, if you had invested back here, in I’m not sure what date that is but it’s in the middle of 2016 I’m guessing it’s August, July. 2016 somewhere in that ballpark, if you had bought Bitcoin then and held on to it until December 7, December 17 of 2017, you would have made $100 for every dollar of Bitcoin you owned or had bought at that time have at that period of time. And so Bitcoin oftentimes will go through 100 x increase during this stretch here, this stretch from the first having was even greater, and it was a lot more than 100 x it came to, I think it was about 170 times your money. So we can see here the effect of supply and demand on Bitcoin. One of the other things that affects supply is who’s willing to sell? If I’m not going to sell you my Bitcoin, then even though there’s 18 million Bitcoin out there today, the Bitcoin I own isn’t for sale right now. And so some of that Bitcoin out there is not for sale. And so even though there’s 18 million Bitcoin in existence today, there’s actually only a small portion of it actually available for sale. Now, in order for somebody to sell their Bitcoin, they have to move it out onto an exchange. And so this chart here shows you the amount of Bitcoin that’s located on various exchanges around the world. And you can see that the supply of Bitcoin on the cryptocurrency exchanges has been dropping, in fact, it’s dropped
pretty close to 30%. That’s a 30% drop in the actual supply of what could be sold. Now, I say what could be sold, because just because people have I have Bitcoin on an exchange doesn’t mean that they’re willing to sell it. Some people have Bitcoin on an exchange, because they opened up an account on that exchange, they deposited money into the exchange, then they bought Bitcoin with the money they had deposited. And they’re just sitting on now there’s a certain amount of Bitcoin that the exchange owns. And that the exchange is with special traders, they give these traders they’re they’re almost like agents of the exchange, but they’re not they’re independent. They just get special rates when it comes to fees, and they get other perks that I’m not fully aware of. But I know that there’s different classes of traders on most exchanges, and some of those are providing liquidity. They’re providing bitcoins so that there’s always Bitcoin available for sale. But with the amount of supply dwindling, it has been forcing the price of bitcoin, up and up as people are withdrawing their cryptocurrency from the exchanges. And the more people that take their cryptocurrency off of exchanges, the less money the less Bitcoin there is for sale. And so in many ways, this metric is really the real supply, because it’s what is really available for someone to purchase. Now, when you look at different kinds of technologies, and how quickly they were adopted, we’re going to kind of change subjects now. So we’ve been talking about the supply side of Bitcoin. Now we’re going to take a look at the demand side of Bitcoin. And so we’ve we’ve talked about how the supply of Bitcoin is actually going down. And that’s part of what’s been driving the price up. Now let’s talk about is the demand for Bitcoin increasing, because if we have both a decrease in supply and an increase in demand, then the price is going to go up. And so let’s take a look at this. So technology adoption has been going faster and faster when something new came out in the 1900s and 1920s. It took 30 to 40 years before that new item could be owned or utilized by the masses. And over time, that time period has gotten faster and faster, to where in the 1980s. We were looking at 15 to 20 year timeframe for many technologies. But today with the advent of cell phones, it actually took cell phones about two years for them to reach mass adoption. Cell phones were introduced in 2007 with the iPhone, and well they weren’t introduced with the iPhone. There were other cell phones out blackberry had those devices with the, with the keyboards that you had almost a full QWERTY keyboard built into the phone. And you had a number of other manufacturers that make it we’re making various kinds of smart cell phones. But the iPhone is the one that really kind of revolutionized the smartphone industry. And today, all smartphones are patterned after the iPhone. So the iPhone was introduced in 2007. Part of the reason why they had to wait until 2007 was the cell networks had to get fast enough in order to provide the data that the cell phones were demanding. And so there was a combination of the technological infrastructure had to be built in order for iPhone and Apple to actually produce a product that could be utilized throughout the world. Well, what happened with the iPhone? It achieved mass adoption extremely fast. I mean, do you remember when people were waiting outside of the Apple Stores sometimes for days just to get a new iPhone? And it was that mad rush of people purchasing the Apple iPhone and then later purchasing other smart telephones that push the the smart phone technology into mass adoption in about a two year period? So are we seeing anything similar? With Bitcoin and cryptocurrency? Are we going to see lines of people lining up waiting
to buy bitcoin? Well, actually, no, because you can buy a Bitcoin anywhere that you have a smartphone, you got a smartphone in your pocket, you got everything you need to buy bitcoin. So think about that for a second. When we talk about different technologies, you know, the things that took 40 years back in the 1900 to 1920s, you were talking about a landline and putting a telephone on the wall. So somebody actually had to come to the house and install it. And then when you’re talking about some of the other things that happened from the 1900s, up till today, like washing machines, toilets, televisions, radios, all of those took several decades for them to reach mass adoption. But it also was a physical, you know, a tangible product, it was something that you physically had to buy. And in some cases, you need some specialists to come in and actually install it for you. If you’re getting a refrigerator or a new washer and dryer or a new oven, you have to have a specialist common install that for you. And so that mass adoption required special skills and installation. And that’s why it took longer for those things to be adopted. But now that we’ve got, you know, smartphones in our hands, we don’t need people to adopt the physical thing. In order to buy bitcoin, if you’ve got a smartphone, if you’ve got a tablet, if you’ve got a computer, you don’t need anything else. In order to buy bitcoin, you just go to a website, you hook that you set up an account on the website, you hook it up to either a bank account or a credit card, and you make your purchase and then you convert it to Bitcoin. And so it’s extremely simple compared to installing a new dishwasher or a new AC unit in your house, you know, a heating heater or air conditioning unit, those things go out there’s a lot of labor that has to go into putting a new one in. So what about mass adoption for Bitcoin, there won’t be any lines, people will be doing it silently and privately. In fact, when you look at the chart now this chart right here is September of 2020. So that was just a few months ago, a few weeks ago. And just so that you understand the chart we’re looking at is a weekly chart. And so each one of these little dot marks each one of these candles represents an entire week. Now you can see here let me grab this right here is $20,000 on the graph here, and that is when Bitcoin exceeded its previous all time high. The $20,000 In fact, let me just put something there because I’m going to talk about that a little bit. Bitcoin exceeded the previous all time high on it. In December of this year, just a few weeks ago, in fact, really, let’s excuse me, let’s move this out of the way. 1234. Yeah, four weeks ago. Four weeks ago is when Bitcoin passed, its previous all time high. And in that four weeks, you can see, oops, that’s not what I was trying to do. Let me do this. There we go. And I’ll need to slide it over a little bit. You can see in that four week period, the price is absolutely skyrocketed. It’s doubled in price in just those four weeks. So think about that for a second Bitcoin is doubled in price in four weeks, it went from $20,000 all the way up to $40,000. That’s a big jump. And that’s a jump when the dollar value of Bitcoin was quite significant. And so a lot of people are always concerned Oh, isn’t Bitcoin overpriced? Isn’t it too much yada yada? Well, the first thing you probably many of you who are watching this video already know this, but I’m going to digress just for people who are newer to cryptocurrency and the Bitcoin in particular, Bitcoin $1 bill is divisible into into units of 100, you can get 100 pennies out of a $1 bill. Well, Bitcoin is divisible by 10 million, you can get 10 million satoshis
out of one bitcoin. Yeah, they did call him satoshis in remembrance or honor of the anonymous person who went by the pseudo name Nakamoto. Satoshi. And so you anyway, you can subdivide Bitcoin into such small units that it takes 100 of them to be worth one penny. Actually, you know what, now that Bitcoin is at 40,000, that’s less, maybe it’s 50, or 25, I’d have to do the math. The bottom line is, is that you can have many, many, many, many satoshis and still only have a few pennies. That’s the that’s the point I’m really trying to get across. So I want to take a look at a chart of what happened to Bitcoin during the last Bull Run. So you can see in 2017, it went up very rapidly. And I want to show you some of this chart closer up, so you have a better idea. The reason for doing that is I kind of want to compare what is the supply and demand doing the price today, versus the last time Bitcoin went on one of these fantastic bull runs, so that we have an idea is Bitcoin going up as fast as it did in 2017? You know, I’ve been listening to a lot of different YouTube channels. And most of them have been talking about ever since we hit the $20,000. They’ve been talking about a price correction. In fact, early, you know, the late December, early June, you know, the first few days of January, because it’s January 8, we’re still early in January. I don’t know why it seems like we’ve been in January for a long time, but it really seems like we’ve been in January for a long time. Anyway. guys that I watch, we’re talking about YouTubers that I watch, we’re talking about how we’re gonna see a price correction, warning, warning, warning, will Robinson danger, dangers ahead, prepare for a price correction and possibly a price crash. Now the reason why they kept saying that is because that’s how Bitcoin behaved the last time it was in a bull run. But as you can see from this chart here, there has not been any kind of price correction ever since we crossed that $20,000 price mark, it’s been going up extremely strongly. Well, here’s the graph for 2017. And you can see the progression it had up to its previous all time highs. But let’s zoom in a little bit. And then you can also see how it dropped rapidly after it hit that all time high. So let’s take a closer look and see what what actually happened. And so this green bar right here is the day that Bitcoin busted through. its previous all time high. This was in June of 2017. And so what I’m showing you is a daily chart where we’re looking at one day at a time. So each one of these notches each I’m sorry, it was January, not June, January of 2017. And so it was listed Really the same time of the year. In fact, that was January 5 2017. And you can see how that green bar popped way up, and it broke through the 11 $100 price range in order to set a brand new all time high. But what did Bitcoin do immediately after take a look at this red section all the way through here. It dropped it tanked. In fact, if you can read this, depending on what size of a screen you’re reading, Bitcoin dropped by 37% in a seven day period. And so each one of these marks each one of these candles is a full day. And it took it seven days, seven days in a row, it continued to drop, and eventually had a 37% loss in those seven days.
We haven’t seen anything like that. We haven’t seen a 30 or 40% drop in price. Since Bitcoin exceeded its previous all time high. In fact, as you saw on this chart here, Bitcoin has doubled its price in just four weeks afterwards. Well, how long did it take Bitcoin to double in price after in 2017, after it exceeded the all time high? This chart goes all the way out to April and even by April, it hadn’t hit $2,000 yet. In fact, if you want to look at it, Bitcoin doesn’t get past $2,000 until really around September, I mean, there’s a little blip here where it jumps above 2000. But then it fell right back down below 2000. And it wasn’t until sometime around September. Let’s see first, second third. So really, it was the last week of September, the first week of October, that Bitcoin really passed the $2,000 price
mark,
that’s months down the road. Bitcoin this year has gone way past what happened in 2017. by a long shot, it wasn’t, we weren’t seeing prices we’re seeing today until September. Think about that for a second. So you have to ask yourself, what’s driving the price. It all goes back to the beginning of our story and supply and demand. Supply and demand today is what’s driving the price. But we have to keep in mind that the supply and demand today, based on what we’re seeing is far stronger than the supply and demand that we saw. I’m having trouble here we go. Then the supply and demand that we saw back in 2017. So we talked earlier about how Citi Bank came out and said that Bitcoin will hit 300,000 by December 21 2021. Well, you gotta keep in mind that when Citibank said that it was November 16, so it was weeks before Bitcoin hit the new all time high. And the only basis they had to go by was this, you know, they were looking at what happened in 2017. And they are trying to speculate where Bitcoin would go compared today compared to what happened in 2017. But we’ve already seen how much stronger this particular Bitcoin Bull Run is, compared to the 2017 bull run now. Is Bitcoin going to maintain this kind of velocity for the next 12 months until December? I don’t know. I nobody can tell you that not even the smartest people who are advising the wealthy. But what we can know what we do know is that so far since we’ve passed 20 K, Bitcoin has had a spectacular price run extremely early in the game. And so what we want to do is we want to watch and just be very careful is, is there a correction coming up? And if so, when, but one of the things that we might want to keep in the back of our mind is what we’re actually experiencing is 1000s of people lining up in order to buy bitcoin just like they did with iPhones. I mean, when you think about it today, they can buy bitcoin on PayPal, whereas prior to about two months ago, they could not pay pal did not sell Bitcoin until two months ago. Square is allowing a lot of individuals who use square for credit card payments for their small businesses square is now allowing people to buy bitcoin and and use Bitcoin as a transaction settlement. So if, if I, if I was a knitter, and I like to knit hats and I was making hats for people, and I was selling those hats, I might use a square, which is those little square things that you see plugged into people’s smartphones. And you would swipe your credit card on that little square device and they would take payments, I might use square to take payments. But if I’m a if I’m a shop that uses square, I can also take Bitcoin payments to when you look at TD Ameritrade and trade station and E trade and how they’re starting to add Bitcoin to them. So we had PayPal, that’s a 300 million customer market, we have square, which is somewhere around 75 or 80 million businesses that can now accept Bitcoin as payments. Now we have TD Ameritrade and TradeStation. And all of these other stock brokerage firms, who are now allowing you to purchase Bitcoin and cryptocurrency and those have 500 million customers, the United States government just a couple of weeks ago changed some of the regulations. And now your local banks such as Bank of America, JP Morgan, etc, they can hold us dollars, or they could hold Bitcoin for you. And so the the, the market is exploding an opportunity from a retail side. But it’s also exploding an opportunity from the wealthy or institutional investor side,
when you look at the announcements by MicroStrategy, and how MicroStrategy is taking half of their US dollar Treasury and putting it into bitcoin, because they are concerned that the dollar is basically melting in terms of purchasing power. I was listening to Michael Saylor. He’s the president of MicroStrategy. And he explains why he bought $500 million worth of Bitcoin. And he was moving money out of the company’s cash Treasury into bitcoin, because in his opinion, his dollar was melting. Now, now, a $1. Bill is still today, a $1. Bill is still like a $1. Bill a year ago. But his point was, is that with all of the money that’s being printed, and inflation, that he actually had a really unique way of describing inflation. He throughout the whole idea that the US government, the CPI index for inflation, he said, That’s garbage, that that really has no basis in reality. He said they say that inflation is going up one or 2%. But you know, a little while ago, we were talking about how the price of houses in the Hamptons, went up by 50% in three months? Well, the price of some things have been stable in that one to 2% price range that the government talks about. But Michael sailor’s point is you should you should calculate inflation for you personally. Think about the things that you’re spending your money on. Are you buying a house? Are you buying health care? Are you buying groceries? Are you buying car insurance or homeowners insurance? And what are those things going up as a percentage from one year to the next year? And in most cases, the items the average person are purchasing. Or if you’re renting, what did your rent go up from year to year, and in most cases, rent doesn’t go up by 1%. It goes up by 5% 10%, sometimes more. And so if you’re paying rent and they just jacked the rents up by 5%, then your inflation rate wasn’t 1%. Your inflation rate was quite a bit higher than 1%. They jacked up your rent by 20% or 25%, then your real inflation rate was a lot more than 1%. And so his suggestion was you almost need to calculate your own personal inflation rate and forget what the government says and when he calculated his own personal inflation rate. It led him to a decision to move money out of cash US dollars. into bitcoin. And so the real question we’re looking at is, obviously, the supply and the demand. balance is off balance right now. And that’s why we see the price skyrocketing as it has been, that’s why the price is going up so dramatically right now. And what you want to do is watch this price. Now I want to give you a little bit of a chicken nugget, a little piece of information to help you figure out, okay, it’s going up really, really fast right now. And just like it has in the past. Here, let me give you this. If I had a rubber band, I hold it like this, and I take the rubber band and I would stretch it down. And so what’s happened is the rubber band has been stretched down. And it’s got a lot of pressure to go right back up into this middle line. And so right now, what we’re seeing with Bitcoin on such a tear, is that rubber band is pushing pressure, there’s there’s pressure pushing the price up. And that pressure is because our supply and demand is not no longer imbalance. And so in order for the supply and demand to get back in balance, the price of bitcoin is going up. And what will happen is eventually it will probably end let me go back to my rubber band. So we would see we would pull down on the rubber band would snap back up to this place where it’s in balance. But a lot of times with the stock market and cryptocurrency it’ll go past its balance, and start going way up here and eventually there’s enough pressure downward
to pull it back in the balance that the price will drop. And so that’s why with Bitcoin and cryptocurrency, oftentimes we see the price drops so dramatically, like we see here. And we end up with an 80% loss. And so in order to help you avoid an 80% loss, what you’re looking at here is a weekly time chart. And this weekly time shark is of the 2017 bull run that ended in January of 2018. This green mark here is right in the first week of January. And so this chart is based on weeks, as you can see here, it’s a weekly chart. And it happened during the last bull run when the price of bitcoin got all the way up to $20,000. And when it reached that $20,000 price range, it turned around and it dropped dramatically. Because of that supply and demand equilibrium had finally been pushed so far out of balance, that it forced it to come right back down. And so what we really want to do is we want to wait to watch, when is that equilibrium turning? And when is the price coming back down? Now, what I’m about to show you is not financial advice. And it we’ve already seen how this particular Bull Run is different than it was in 2017. And so while I think it’s good information, I’m not sure it’ll actually behave in the same manner. And so we may end up finding a new thing that we need to watch in order to figure out when it’s turning, but I wanted to share this with you because this is what most of the people that I listened to, as far as cryptocurrency commenters and commentators talk about this orange line here is a simple moving average on the 20 on the weekly timeframe. And it’s a simple moving average of 20 weeks. Now some people talk 20 weeks, some people talk 21 weeks, but here’s the important thing, because it will work the same whether you’re using a 20 or a 21 for your simple moving average, on a weekly timeframe. This orange line that you see going across this chart, and then down is that moving average and you can see during the bull run that line was always below the price until it had really busted back and was no longer in a bull run. Now, one thing that I’ve been working on with my computer trading program is how do you shorten this time but don’t shorten it so much that you miss out on profit and my algorithm them currently would have exited. I’ve run the back test. And what a back test is, is when you force the algorithm when you force your trading program to only look at data in the history in the past, and so I would run it on a daily basis and say, Okay, what did you think the price was this day, and then the next day, and then the next day all the way through. And the date that the out the trading program I’m using, would have sold Bitcoin was right about 13,500. So we still saw about a 30% dip, compared to the all time high of 19,500. But it did get us out a little bit before the simple moving the 20 week simple moving average, which you can see it crossed right at the $10,000 mark, which means you lost close to 50% of the possible gain. And so I’m continuing trying to improve my trading algorithm, so that we can get a little bit better than that. But hey, at least we’re beating what many people consider the standard today to measure whether or not we’re still in a bull run, eventually, we are going to see an exponential increase like we’re seeing now. But if you look at what happened, we were seeing almost Bitcoin, pretty close to doubling in price on a weekly basis. And so actually, here’s the 10,000 mark. So this is right below 12,000. And it jumped all the way up to the $19,000 price and then came back down. And then the next week, it actually hit a higher price, but not by a lot. So anyway, I’ve said an awful lot today, I’ve been chewing your ear. And I can do that when it comes to cryptocurrency. In conclusion, the trading program I just mentioned uses mind numbing math that runs through 1000s of calculations. If you’re interested in seeing what it is doing, you can go to etoro people Lumin8 algo trader, and you can see where my trading program is on that moment that you go to this web page. And you’ll be able to see hey, are we in profit? Are we in loss right now, for the month of January, we’re up by 46%. So we’re I’m pretty happy with where we’re at. Hopefully, we can keep that pace up. Time will tell. Now if you don’t already have an etoro account, you can get a $50 bonus for signing up and setting up an etoro account. And the way you get that bonus is you’ll go to this website etoro.tw. To SDI o m s, deposit $200 or more. And then copy trade me with that $200 and etoro will give you a $50 limited offer bonus. Now here’s how the offer is limited. Only 10 people get that bonus. And as of today, I’ve only had four people that have actually gotten that $50. And so at the moment, there’s six more people that could get this $50 bonus. And so if you’re quick, and you go ahead and sign up for etoro very quickly, you too can take advantage of getting that limited offer bonus now just in full disclosure, and I should have said this in some of my other videos. I am saying today, when you get 50 bucks etoro will also give me 50 bucks for your signup. And so we both get to enjoy a little bit of a bonus there. But I wanted to share that. In fact, I’m less concerned about whether or not I got the 50 bucks if they were if they set it up so that I didn’t get the 50 bucks but only you got the 50 bucks then I would keep telling you about it because I would want you to take be able to take advantage of it and be able to copy Trade Me as well. All right. So in conclusion, how can I be of service to you? Do you have any questions, please go to our YouTube channel and leave comments in the comment section below on the YouTube channel. 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