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Bitcoin is famous for corrections. Today we will talk about corrections so that you are prepared and not surprised when they happen. When you are ready, a correction will not take you by surprise. What you will learn in this video will apply to ALL cryptocurrencies and not just Bitcoin. So get your self ready for the wild ride of corrections and learn more about handling them and not overreacting. At the end of the video, we will talk about the correction of Jan 11, 2021. Stay tuned watch this video to the end.
Hello and welcome. I hope that you are having a fantastic day today. We have a great video prepped for you, I think you’re gonna love it. So what are we going to talk about? Let’s talk about corrections. Now in cryptocurrency and with Bitcoin or any other cryptocurrency,
we will encounter
a number of different corrections, you need to correct something because it’s a little bit off. And when something’s a little bit off it, it takes a little bit of a correction. And so we’re gonna look at corrections when it comes to cryptocurrencies. Let’s get into it. Now, this is our website luminate crypto.com. I hope you’ll visit it if you scroll down to the bottom of the page, there’s a forum where you can sign up, you’ll get notified every time you’ll get an email every time we put out a new video, and so you’ll be one of the first people to be aware of that video. Plus, you’ll get invited to our exclusive online webinars. And the only way to get your invitation is to join our email list. So I hope you’ll join the list today. Now, I’m my background is not as a financial advisor. My background is in computers and computer programming. I’ve been doing computer programming for 20 years now I have a lot of it experience but I don’t have any financial advisor experience. This is not financial advice. And as always do your own research. Take what I say with a grain of salt and dig into it for yourself learn more about it because the more knowledge you have regarding Bitcoin and cryptocurrency The better you are going to be when it comes to trading and doing the best you can with cryptocurrency. And so cryptocurrency involves substantial risk of loss and is not suitable for every investor. Plus, past results are no
of future performance. And so read the rest of this, this paragraph right here. It has invaluable information for no matter what kind of investment you’re making, but especially when it comes to cryptocurrency. As always, we want you to stay safe. Stay safe, not only safe and healthy, but stay safe financially, we want you to make money. And that’s what our YouTube channel is about is to help you to give you ideas to help you take profits and avoid losses. And so one of those efforts that we have for helping you avoid losses is this paragraph here. Now, when Bitcoin drops in price, the entire cryptocurrency market drops in price about a week ago, and Today is January 17th. And so on January 11 and 10th Bitcoin took a steep price dip, it dropped past this 32,000 figure all the way down to $30,000 in a very, very short period of time and happened in a in a matter of hours, in fact, and you can see that when that happened, the entire cryptocurrency market went red went into the negative and so a lot of times on this channel I talk about Bitcoin but the reason why I’ll talk about Bitcoin, is because sometimes what applies to Bitcoin applies to all the rest of the cryptocurrencies out there. So today we’re gonna focus primarily on corrections with Bitcoin. But if you look at the charts, the same day, Bitcoin had its corrections, most not all, but many other cryptocurrencies also had a correction. And so while I’m not going to talk about aetherium, and Litecoin, and ada cardano, XRP, or whatever your favorite cryptocurrency is, it’s most likely that when Bitcoin took its dive when it took its correction, then your favorite cryptocurrency or other cryptocurrency took a correction. And that’s illustrated by this chart here, you can see that everything was in the red on the date that we’re talking about, where Bitcoin took its dip. Now before we really get into the depth, I kind of want to remind you of this chart, and the main reason for showing this to you is we’re looking at some crashes. So here’s November 2012, and Bitcoin was in a massive Bull Run. In fact, it did more than 150 x from its previous low, up to the new all time high and at that time, the all time high became $1,161. And so in today’s market, it would be fabulous if you could buy a Bitcoin for 1000 bucks. But anyway, you can see right after it, Bitcoin took a severe dip. And that dip lasted for a year, so 12 months. And this is typically what happens. And so you can see that it happened again here where Bitcoin took another dive for 12 months, it was a bear market for 12 months. And in both of these cases, Bitcoin lost about 80% of its value. Here, we dropped from 12 $100, down to 120 $180. Here, we dropped from $20,000, all the way down to 3800 3500, in that ballpark. And so Bitcoin has, what it’ll do is it’ll have these massive bull runs for every four years, it goes through a cycle, Bitcoin goes into having the new Bitcoin that’s created is cut in half. And when that happens, it affects the market significantly. So immediately, for the bat to 12 to 18 months after the halving Bitcoin tends to go into a bull run. And then after that Bull Run peeks out, it goes into a bear market for about a year. And so the reason why I want to talk about this is I want to give you information to help you because the the next bull market, if it follows the same pattern, and it may, then we may see Bitcoin, make substantial gains until somewhere around December 2021. It might be a little bit early by a couple of months might be late by several months. But if it does follow this pattern, and as always, past performance is not indicative of future results. In other words, just because this happened back in 2018 2017, doesn’t mean it’s going to happen again today. But we can learn from these because cryptocurrencies and the stock market tends to rise, even if it doesn’t repeat exactly. And so if it does rhyme, then that means that we’re currently in a bull run. And based on the results, it definitely looks like it we’ve done just absolutely fantastic. But we can see it ending sometime in the future, and we want to be ready for that big correction. And that 12 months where the price is declining, we want to be prepared for that so that it doesn’t wipe out 80% of our gains. Now, having said that, let’s look at this first chart that I’m going to show you here is Bitcoin gold, the actual ticker symbol for that as btg. You can see part of the ticker symbol up here. But for whatever reason, it didn’t fit into this little box. And so the browser cut it off, you can see that we’re looking at a two hour chart. And on this two hour chart, we’re looking at the date of January 15 2020. Now I wanted to show you this, because I wanted to give you a great example of how fast the price of something can go up. Now when I bought this particular cryptocurrency btg, it was at the end of December, the beginning of January and the price was right around five bucks, you can see that the price in here is right around the $6 mark. And what happened to it in a matter of just a couple of hours. I mean, here’s a two hour bar. And here’s another two hour bar, you can see that the price went up in in the ballpark of 300 400%. I mean from $6 down here all the way up to $23. That’s that’s close to about four times the price in just a matter of hours. And so this shows how fast a cryptocurrency can go up. But then notice what happened to the price. I mean that very same hour, it also dropped all the way down to $16. When it finally when we finally got to close on this two hour period, it was no longer at that $23 Peak, it had actually dropped down to the $16 price. And then within the next day or two because you can see the dates down here. Here’s the 16th and so by the time we were in the 16th we were down to a $12 price. And so a lot of times when you see cryptocurrency going up by you know two or 300% 400% in a matter of a couple of hours. You want to watch that really close and do your very best to sell at the peak. Now I was I got out of this trade right in here at the $17 price point somewhere in this ballpark right here is where I actually see sold, the trade that I had. Now looking back at it, I wish I had a little bit more patience I saw starting to dip down here. And that dip, I thought it had started its trend down. Because anytime you see something go up this fast, it’s gonna also drop pretty quick too. And so you want to look for those kinds of corrections. Now this correction is a correction that happened after a really quick high or really quick all time high for btg. And so one type of correction happens when the price just skyrockets in a very short period of time. There are also lots of other kinds of corrections. And so we originally talked back here about, you know, the $20,000 price peak, and then what happens after it hits 20 grand. In this case, we’re going to actually go back here and look at what happened when it was hitting this all time high. And sorry, right in here. Let me shrink this up. So you know, what I’m referring to, right in here is where Bitcoin passed the previous all time high of 11 $161. And so right here is where that happened. And you can see that that’s a red candle. Now this chart is a monthly chart. So we want to zoom in a little bit more. And here we’re looking at the daily chart one day at a time, for that very same month period. So this, this monthly chart here where that red candle is, is what we’re looking at right here. And so we can see Bitcoin hit that new all time high of right around the 11 $100 price point and immediately dumped in price right back down. In fact, this dump was so significant that Bitcoin within just a matter of days dropped 37%. Now notice it didn’t happen in just one day that it dropped the 37%. Because we’re, we’re still looking at a daily chart here, you can see this is a daily chart.
And so each one of these candles represents one day in time. And so in two days, it dropped about 1515 20%, somewhere in that ballpark. And then the next few days, it kind of went sideways. And then finally, it had a bigger drop, where it ended up with a 37% loss down here now eventually recovered because as we know this was in the track to get to bitcoins new all time high of 20,000. Now the reason why I’m showing you this is because I want you to be able to compare the 2017 Bull Run with today’s Bull Run. Now with today’s bull run when Bitcoin hit the all time high of $20,000. Unlike last times Bull Run, it didn’t tank and drop 30 or 40%. Instead, Bitcoin kept going up, it hit that $20,000 price point, and then skyrocketed all the way to 40,000. And then it hit that 40,000 and then tanked by 30%. But that that drop to 30% didn’t take it days like it did here, it took it hours. That’s why with etoro we got out of a lot of cryptocurrencies on that day because of how fast it was dropping in price. And then you’ll also notice that in the previous Bull Run, it literally took from January 17 is when the price started dropping, it didn’t recover, to get to the same point until February 21. And so it took a month and about a month in the number of days a month in about four or five days for it to get back to the all time high. Well, with this price correction that we just saw in a week ago, it took it less than a week before it hit the $40,000 price point. In fact, it was a matter of about four days, it was my Wednesday, it was touching the 40,000. And it’s dropped back down and at this moment, it’s trading somewhere around 34,000 36,000. It’s kind of been going sideways in that price range. Now you might be asking, okay, why is he showing me all of this? The main reason I’m showing you all of this is because a lot of people were panicking. They saw Bitcoin hit the $40,000 price range tank and dropped way down. And then it has recovered and they’re all worried about Should I get out? Is this a big deal? Is it ever going to recover? Or are we going to see it go above 40,000? So what I’m about to tell you again, as I said at the beginning of the video, this is my opinion. I’m not a financial adviser, but based off of history based off of what we’ve seen Bitcoin do in its previous bull runs My opinion is that it actually is much stronger in terms of its velocity in in in price increases than it was in 2017, when it hit that previous all time high of $20,000. And so I don’t think this is the time to panic at all, I think things are actually doing really well compared to 2017. Let’s take a look at another example. But this one is a little bit more recent, this one was about a year ago. Now, we’ve all been impacted by the pandemic. And this happened when the pandemic first started. In fact, if you think about what was going on, in the end of February, and the first few days of March, we didn’t even know hardly any of us really knew about, you know, what is, what is this disease, and what’s this virus and yada, yada. And then it wasn’t until this point, right at March 7, March 9, that we actually saw things tank. Now this is another daily chart. So each one of these candles, each one of these red and green marks here represents a full day. And so this first red candle up here in this corner, is the first day of that price drop. And you can see that it dropped a little bit that day. And then the next day it dropped some more. And then by the time we get out here to somewhere around the ninth 10th it took a huge drop. Actually, if you look at this day, right here, this day, let me zoom in on that a little bit. You can see this red skinny lines going up and down right here. Well that day, in the single day, it had a huge amount of velocity, but it ended up closing the day up in this ballpark. Right in the middle of it right up in here is where it ended up, finishing the day. And so it dropped way down came way back up, etc, etc. And so this price drop here was 58% over a seven day period,
which is 58% is a lot. But it took a unique event. Every stock market in the world also dropped very dramatically. It was one of the steepest drops that the New York Stock Exchange ever saw in a single day in its history. I don’t remember if it was the biggest one. But if it wasn’t the biggest one, it was right up there. It was really close. I think it was the biggest, maybe somebody can let me know through the comments below. And anyway, it affected everything, not just Bitcoin and not just cryptocurrency. And yet, Bitcoin, it did take Bitcoin a while you can see that it recovered right back to the price it previously was. It did take several months went from April and May here, all the way out here to about a may 11. Before it was seeing new higher prices. So one of the things that you want to take away from this is sometimes you just gotta give Bitcoin and cryptocurrency a little bit of breathing room. Now notice the prices that we’re looking at here in this chart, were right around 9000. It has not been that long. Since April and May of 2020. It’s been what is that nine months, it’s been right around nine months. And yet in nine months, the price has gone from $9,000 to $40,000. And so even with that, that’s a four times gain on your money. I don’t know where you could put your money and in nine months, it grows by four acts. But what you need to keep in mind is that when you’re looking at getting those dramatic gains like that, you’re also going to see some fairly dramatic losses and so it takes somebody with some Kahunas in order to stay in the game even during those big dips. What happens what happens with a lot of people that get burned with Bitcoin and or cryptocurrency is a they either sold when they should have just stayed right in the game they sold at a low point and they paid a much higher price. And they sold because they were worried about losing their money. Or they may have bought a really crappy coin and so if you’re investing just in the best cryptocurrency coins, you can have a degree of confidence that it will bounce back you want to look for coins such as Bitcoin that has a history of time that you can actually see okay, it dipped here. It went up here. And so on. And so when I say that you should do your own research, one of the things that you want to do is look at the charts and look at its history. Now these charts here that I show you comes from a website called coin gecko.com. And so if you go to coin gecko.com, you can look up any particular cryptocurrency and then drill into its previous price history, as you’ve seen me doing. And so this is the price dip from just a couple of days ago from this week, you can see that we’re looking at a four hour chart here, even though this four hour chart actually looks like the daily chart on the other stuff that we’ve been looking at. And we can see that this price dip, here are the dates down here. So this is from January 10 2021, all the way to January 11 2021. And so the price dropped in one day, really in about 12 hours, it dropped by 27%. Let me get rid of these. So you can actually look at this information here. So it dropped 27% in one day, eight hours. And so I’m a little bit off on my dates out, oh, I see what I did. Alright, so in 24 hours, 24 and a half hours, one and a half days, let’s let’s go with that that’s easier, it makes more sense. I’m not making sense with the 24 hours stuff.
Anyway, one and a half days, Bitcoin dropped 27%. So that’s a pretty severe drop in one and a half days. But it more than recovered almost right away. Because you can see here on the 11th is when it had dropped down
to the $30,000 price point. But here by the 14th 15th timeframe, it’s right back up to the $40,000 price point, and then it dropped again, recovered a little bit dropped. Again, it’s hit 40,000 on Friday. And then now it’s it’s fluctuating right in the 36 $35,000 price point. Now Time will tell what I’m about to say may or may not hold true, but I got a feeling. And this is just my guess it’s a guess at this point. We’ll know probably in about a year, maybe two years from now. But it wouldn’t surprise me one bit to find out that this 36 $35,000 price is the lowest that we’ll ever see Bitcoin go again, you know, when you look at the previous bull runs, you can find somewhere in there the lowest price that Bitcoin hit, after it did that Bull Run, and that lowest price was oftentimes quite a bit higher than the previous all time high. And so here’s here’s the previous all time high, and the lowest price in here was nothing near the all time high that was before this one. And then let me get rid of some of this. So that we can focus on things here’s the previous all time high of 20,000. And so the all time high just before that is 1161. And you can see after it hit this $20,000 Mark, it never dropped, it’s never dropped below this $1,000 ever since in fact, the lowest it’s hit. Since it did this $20,000 price point, the lowest it’s been is $3,800, which is about a three and a half, four x gain from this previous all time high. And so we may find that that holds true. And if it does, then three to four x from 20,000 is closer to a 60,000 to maybe $80,000 price point. So when I say that this ballpark figure 35,000, we may never see it again, once we once we make a strong push above the $40,000 price point. It may never drop down here again, that’s quite reasonable between now and when we get to the next all time high, I got a feeling that the next all time high, we were not going to see until somewhere in December 2021. Now that’s guessing that things follow this same pattern that we’ve seen in the previous bull runs. And if it does follow that same pattern, then we we may see the all time high sometime around December 2020. And if that happens, then we may be looking at this price point that Citibank has been talking about Citibank has that investor report where it talks About the all time high, hitting December 21 of $300,000. And if we do see an all time high, coming up in December 21, of 300,000 250,000 $400,000, somewhere in that vicinity, then I think it’s quite likely that 36 will be in the history books, and we may never visit it again. Anyway, that is my video for you guys. Today, I want to talk to you a little bit about what we’ve done to help you take profits and avoid losses. We’ve spent two years and 1000s of hours testing and a trading program. And the way my trading program works is we run it once a day and when it runs, it gives us recommendations as far as which cryptocurrencies to buy in which cryptocurrencies that we previously bought we should sell.
Typically, the algorithm will have us hold cryptocurrency for about 30 days. Of course, sometimes it’s shorter, sometimes it’s longer 30 days was the average length. And the algorithm runs 1000s of mathematical calculations, before it makes its recommendations. So if you’re interested in participating in using that algorithm for your trading, you can just go to this website etoro.com people slash luminate algo trader, also etoro has let us set up for brand new etoro customers, it’s a $50 limited offer bonus, it’s available for the first 10 people that take advantage of it at this point, we have about five people that have taken advantage of it. So we have about five slots left. And how you can get this $50 bonus is by taking these three steps here, the first step is go to this website, it’s etoro.tw, to SDI o m s, that’s the website so that you can get this $50 bonus, I will get $50 when you get $50, just kind of a upfront disclosure. And then the second step that you have to do is you have to deposit $200 or more. And then once you’ve deposited your money, sign up to become a copy trader of us on luminate algo trainer and by copy trading us you will have completed all of the criteria that etoro needs you to complete in order for you to get your $50 bonus. And so I just wanted to share that with you, you may want to take advantage of that. In the meantime, how can I be of service to you? Do you have any questions thoughts, comments, please leave them in the YouTube channel below. In the meantime, I hope that you will like subscribe and huddle and do me a favor and have a fantastic day.