In today’s lecture, I will tell you why you must avoid to panic and sell everything when Bitcoin crash.
Bitcoin Crash in 2021 – Why Should You Avoid Panic?
This is the last thing you need to do when you are investing in Bitcoin and in cryptocurrencies. If you panic, you will lose it all.
Now, if you panic on the market, most probably, you will do actions that will lead to losses. You will miss profits and you will let your emotions drive your investing. And this is the wrong thing. Personally, in March 2021, I don’t see any reason to panic. And in this lecture, I’m going to explain why.
In recent weeks, in the recent months, when Bitcoin reached record highs of $40,000, $50,000, nearly $62,000 by the time I’m recording this video, I have read so many posts, YouTube videos of people saying that Bitcoin is going to crash and you have to sell it right now.
If you want to take some profits, then you’re most welcome to sell it and take your profits. I always admire people who take profits. But you shouldn’t be selling because you panic.
What happened with Bitcoin in 2021
So let’s see what happened with Bitcoin in the last months. In January 2021, the big Whales or these are the
huge investors that have over 1,000 Bitcoins, have bought over 80,000 Bitcoins in total. And in February, they have sold over 140,000 Bitcoins.
And these are transactions for a few billion dollars. At the same time, the Dolphins and the Sharks, which are the smaller investors that have less than 1,000 Bitcoins, in February, they have bought over 117,000 Bitcoins. And the Fishes, which are the small guys having between 10 and 100 Bitcoins, since November, they have sold over 128,000 Bitcoins.
Prices is not controlled by the Whales only
And you might wonder why I’m bringing all of that to you. What matters if the Whales are selling more in February compared to what they’ve bought in January? Thing is, more and more investors are into Bitcoin. And it’s not only the Whales who control the price.
Now, I’m pretty sure that if a couple of Whales combine their efforts to crash the Bitcoin price, they can do it. But what means crashing the Bitcoin price in March 2021?
In January, the price reached $42,000, and then it fell to $29,000. Which is approximately $13,000 of a retracement, if you have calculated that, that is more than 30% of a retracement. In February, the price reached $58,000 and it dropped down to $43,000 which is approximately $15,000 or above 25%.
Bitcoin price retracement
Now, how much the Bitcoin price crashed in 2018? Nearly the same thing, but this time it recovered much faster. If we calculate in percentage, I agree that in 2018 it was a much bigger Bitcoin crash. But this was because the people panicked.
From my personal experience, what I see in the Trading Academy, from having online courses, and from actually investing in the crypto market, I can see a huge difference between 2017-2018 and today. This balloon that everyone is talking about was because the mass of people around the world was buying cryptocurrencies and Bitcoin. And not that much as the investors. When they panicked, the Bitcoin price really crashed.
But now, $15,000 of a retracement happens monthly and in March, the price reached nearly $62,000. Then it fell to $53,000 which is somewhere at about 14%. So even if we see a little bit of a bigger retracement like what we had in February, and in January 2021, that would be expected.
And why did I say that from the Trading Academy and online courses I know that the price is driven by the investors? Because I know exactly how much demand there is from retail investors, the average people, and the investors. But the important thing here and what I want you to take from this lecture is the fact that the investors do not panic. Every retracement or crash on Bitcoin is another opportunity for them to buy at a cheaper price.
Why investors don’t panic
And let’s imagine for a moment I am a Whale, I have 200,000 Bitcoins, for example. If I see the price at $50,000 or at $60,000. Do you think I’m going to sell all of that? I’m not going to sell all of that. I’m going to sell a small piece. Definitely, it will impact the market and at the same time, I will buy again when the price drops. $15,000 lower is a huge thing.
But the investors are not going to be sweating and trying to sell their Bitcoin fast. Keep that in mind that they don’t panic when Bitcoin crash. And the one reason they don’t panic is because they have a lot of Bitcoin. So it is crucially important to learn not to panic as you will end up always buying it expensive and selling it cheap. Because usually what happens with the beginners and the people who start investing on the market, is that when the price goes up, they are excited. They want to buy more and they buy more.
When the price starts to drop, they start to panic. They start to worry that they will lose their investment and they start to sell. And when the price recovers again and goes up again, new record highs instead of taking profit there, their confidence is back and they buy again. And this way, the mass of people end up buying it expensive and selling it cheap while the huge guys do the very opposite thing, they buy the dips and they sell the record highs.
The Counter Trendline and aggressive Counter Trendline
So try to convert your mindset and try to think like the big guys. Even if you have a small piece, even if you have 0.01 of a Bitcoin. Doesn’t really matter, the quantity never matters. This is why one of my most profitable methods until the moment, is to use the Counter Trendline and the aggressive Counter Trendline which I explain in many of my online courses. So this way, I buy the dips but just when the price starts to recover.
And I use Fibonacci targets to take the profits at record highs. At the end of this lecture, I will share with you one of the most profitable strategies until the moment for the very beginner traders. In my courses, I go to a little bit of advanced technical analysis which I’ve been doing for the last 10 years. But if you want to know which is the very simple strategy that will bring you profits in the long term, this is the Dollar Cost Averaging.
In simple words, this means that you are buying every first day of the month or every Monday. So you buy a piece and you buy a piece and you buy a piece and you buy a piece and you don’t care where the price is. In the long term, when Bitcoin is reaching new record highs, you will be always on a better average price. And the Dollar Cost Averaging strategy is suitable for people who have no idea about charts, analysis, and the news.
Dollar Cost Averaging Strategy
You don’t have time to follow what’s going on in the crypto market, you just want to invest some amount. So Dollar Cost Averaging strategy is definitely one of the things you need to consider. Because it drives your emotions away. And you will have always a better average price when Bitcoin reaches new record highs, which it does all the time.
But one more time, whenever you are comfortable with the profits you have in the account, you should take them. There are always retracements, and there are always new opportunities on the markets. Other cryptocurrencies than the Bitcoin which are just starting out may be a better choice when the Bitcoin crash.
And I’m not a financial advisor, you should always do your research, do your diligence. But when it comes to taking profits and you have profit in your account, then why not take it? So take it, easy guys, think twice before you act.
Look at the charts, calculate how much Bitcoin felt last month, and what is the felt this month. So you will have an idea of what actually means crashing nowadays. But personally, I don’t see in 2021 Bitcoin to crash again to $3,000, $4,000, not even below the $20,000 or even $30,000. That’s how I personally feel it because one more time, too many investors are into it now. Too many companies buying Bitcoin, implementing it into their business.
Thank you guys for reading. Let me know what you think about the Bitcoin crash in 2021 in the comments below. Is Bitcoin crashing right now or not? We’ll see you guys in another lecture.