is Bitcoin dead and Bitcoin price right now
In this video about what's happening behind the scenes, what traders are doing behind the scenes, and I'll show you what this means. Plus I'm going to explain to you exactly what this chart here is telling us something quite important but what's happening among people out there and what they're thinking about bitcoin. So that's very interesting. I'll talk to you about in just a few moments now. Before I do that, first of all, I want to begin by doing a quick summary of what I've been saying in these videos for the last few months. I say for the last six to 10 months, and this is quite important. So do you pay attention? You see guys, back in September of last year, September 2017 when bitcoin was trading about 3000 or $3,500. So I posted this video and here's what I said in that video, in that video at the time bitcoin had a major drop.
It fell from 5,000 to 3000, almost 3000. As you can see there. Everybody suddenly turned against Bitcoin. In fact, everybody was bearish about bitcoin saying, oh, bad news. And all that, I'll tell you what, the bad news wasn't just a few months, but here's the deal. I was one of the few people out there, one of the few voices out there who kept repeating that, no, this drop was a buying opportunity. In fact, you can go ahead and watch the video again if you want. But what I said was that at this point, now's a good time to start loading up on bitcoin because it's going to go up to 5,000 as our first target and potentially higher than 5,000. So that was back in September last year. I was bullish when everyone was bearish. By the way. Would you like to know what the news networks were saying? The financial news networks like Bloomberg and even on some of the other channels, they were all bearish.
Look at this article from Bloomberg. The summer of bitcoin ends badly. This was posted just a few days before I posted my video. This was in September of 2017 as you can see right there. So again, whether we're talking about was a ban on initial coin offerings. BBC was saying that the top Chinese bitcoin exchange was a stop trading and again, I said, and I'm repeating this guys, I said, ignore the news, focus on the charts. The charts were telling us that the price of Bitcoin was going to go higher and that's why I said ignore the news and what happened next. Well, as I'm sure most of you know, the rest is history, bitcoin form the bottom right there, a level I was talking about, and then of course had rallied higher from there. Like September was a major Lutein. I made another video as you can see right here.
And I said, why bitcoin? 10,000 is now unstoppable. I said, what to do before bitcoin hits $10,000. At the time I posted my video, bitcoin was trading about $7,000 and here's what I said, I said, any potential pullbacks to 6,000 or $5,000 can be used as long or buying opportunities. The next long term target is $10,000 and as I'm sure you know what happened next, my prediction turned out to be correct and you can see there it is. Bitcoin dropped to 6,000, turned out to be a buying opportunity and of course rallied nicely higher from there. So again guys, bottom line is we ignore the news. We went with the charts. Now look at this. In this particular video I posted on eighth of December, I issued a strong warning against buying bitcoin. All right? I said, look, it's a dangerous time to buy bitcoin.
And by the way, at that time when I posted the video, the bitcoin prices were about 16 to $18,000 and I made a strong warning about bitcoin. I said, look, now, not a good time. Why? Because the charts were telling us that we were reaching bubble territory, bubble territory, not seen since 2013. As you can see, that wasn't my video. And of course you know the rest of it, bitcoin than dropped about 50 percent of them, 70 percent all the way down. And by the way, guys, just to be clear, I am not saying that I got every prediction right? Absolutely not. I'll tell you one thing, I did not foresee that bitcoin was going to go from 10,000 to 20,000 in just a couple of weeks. I did not see that happening. It came as a shock to me as it came as a shock to many other people out there, but what I am saying is this.
The key point I want you to understand about this is that when you look at the chart of Bitcoin or indeed any market, the first thing you should do is put away from your mind anything you're hearing in the financial media or the financial news networks, if anything, trying to the opposite of what these guys are saying.
Now, let me ask you this question. What do you think right now as the major news story in the financial news networks? Are they positive or are they negative? I can tell you right now, you switch on any financial news network about bitcoin. The majority are negative. Majority of people keep expecting the bitcoin is going to fall lower to down to 3000. Okay. Now let me just show you this. This is from Google trends. Let me just show you this. First of all, this is quite important.
Have a guess at what's one of the top searches on bitcoin right now is number nine on the top 10 searches on Bitcoin is. This is bit coin dead guys. I'm not making this up. It's right there for you. This is the number ninth search on Google about bitcoin and by the way in case you're thinking what is a top five? Well, here it is. Not really interesting. Bitcoin price right now. Some other stuff here about the vix and all that, but again, as you can see that that right there is bitcoin did is one of the top searches on bitcoin right now, and by the way, look at this. This is the chart of that search. You can see right there. Take a look at this. On June 24th, it reached a climax that search for his bitcoin did reached a climax and in case you're thinking, is that significant?
Yes it is. June 24th when that search for bitcoin being dead was a climax or reach the top, you can see, look at that. That was right about the time when bitcoin was hitting these lows and then of course it bounced from there. Okay, so you can see how psychology of people play such an important part in price and also in what bitcoin is doing. By the way, another, another search. That's quite interesting. Take a look at this. One of the top searches on Bitcoin also is this. Take a look how to short bitcoin. Okay, so what's been gaining traction on Google searches is how to shore people are searching for this phrase, how to short bitcoin or bet against bitcoin. Other words, and it's been getting a lot of traction here. As you can see, and that's been rising. Look at this. That search is now rising as I'm speaking.
The smart way you should try to start Bitcoin trading with small amount of money
Okay? That's a red flag. Why are so many people looking up this phrase? How to short bitcoin. So guys, remember as a contrarian, when we see searches like this, how to short bitcoin, is bitcoin dead? That is a red flag and it's a positive thing. It's a positive thing for bitcoin is a bullish thing. So what does that mean? Doesn't mean we should just go in and buy bitcoin right now. No, I'm not saying that, but what I'm saying is that this is looking good for bitcoin. The fact that sentiment is getting crushed. Everybody thinks a bitcoin is going to go lower. In fact, one of the. I can tell you this much. I've received emails and comments from people saying that, that they've already short and they're already expecting $3,000 in bitcoin. Now, let me say this, if everybody expects that to happen, if everybody is expecting the bitcoin is going to drop and go to $3,000 than somebody who's not thinking, I'm.
By the way, that is one of my favourite phrases from one of the best investors and traders in the world. Jim Rogers was a billionaire investor. He said, this is when everybody is thinking the same thing. Somebody is not thinking you should at least examined the other side. By the way, take a look at this. Behind the scenes, non-commercials are getting heavily shorts on bitcoin. Look at that. This is the non-commercials. In other words, the dumb money. These are essentially trend-followers, and let me just say this, trend followers are usually in the wrong side of the market when the market reverses, when the market reverses friends, followers are non-commercial, are on the wrong side the majority of the time. Look at this. They're heavily short right now. This data as according to the most recent and latest commitment of traders report the next one that we published a thing next week, but this certainly what we're seeing here is a lot of short positions on Bitcoin, which again gets me interested to have a look at the opposite side, the bullish case for Bitcoin.
All right, and by the way guys, I will say this, the fact that bitcoin went below the lows of February, went below 6,000 and then quickly reversed direction and went back above it again. To me, I mean that's a classic case of false breakout and by the way guys, if you haven't seen my previous video and false breakouts and go ahead and watch it, it's certainly worth viewing. So the bottom line is this guys, we've got a false breakout by the looks of it and we did not stay below. We did not stay below 6,000 for very long before we quickly jump, jumping back above it again. Okay, so that's a positive sign for bitcoin. And much more importantly is this thing could look at the monthly timeframe. This is the monthly chart of bitcoin. Okay, now I mentioned this in last week's video, but I want to say it again because this is so important.
Notice that after huge rally we saw in Bitcoin last year, this drop we've seen here is nothing more, nothing more than a correction, a correction down to the 21 monthly 21 average. Okay? Let me repeat that. The drop the 70 percent drop if seen in bitcoin. And the reason why I have refused to call this drop a bear market or a downward trend is because it's nothing more than a correction, a correction down to the 21 monthly average. Okay? That's the Blue Line you see there on my chart right there. Okay? And notice, notice that we've held that support. We've held, that's a 21 month. The average, which by the way is a key support level. It is knowing thing is very significant, very important. We've managed to bounce off that level. Let me just show you this. The 21 moving average is such an important level in technical analysis.
Last year in 2017, just take a look at this chart. Notice how many times price came down to its 21 moving average on the Wiki charts and bounced from it. I actually think there's a high probability that bitcoin is going to respect this level, this 21 monthly average and you can see already managed to bounce from it and I think we could see a potential rally from here and potential rally from bitcoin prices here at the very least, test some previous resistance. Don't get me wrong here. I'm not saying that Bitcoin is not going to rally all the way back up to 20, 20,000, whatever it is. Previous levels back in January. No, I'm not willing to go that far just yet. Let's just try and keep it realistic for the moment, but I do think the fact that bitcoin is now for the moment is respecting this 21 average holding the support level is significant and that's actually quite something to bear in mind given the fact that right now people have turned against bitcoin so dramatically to me, I believe that this is now a moment where I would like to get bullish on bitcoin.
By the way, if I'm wrong about this and if for example, in the next few days or in the next couple of weeks, bitcoin falls back below these support levels that fine, you know what? You can come here below this comments section and just laugh at me in the comment section. That's fine. Okay? I'm willing to be ridiculed and I'm willing to take your hate mail. Whatever you want to do, that's fine by me. By the way, guys, before I finish this video, I want to make it very important point, which is this, that for professional investors and traders being right or wrong, it doesn't actually matter. Of course we want to be right. Don't get me wrong here, of course we all want to be right. We don't want to be wrong, but for professional investors and traders, being right or wrong is not important. What does matter is risk versus return.
In fact, one of the best traders of all time, Larry Height setting the book market wizards who said this? Frankly, I don't see markets. I see risks, rewards, and money. That's it. Which means what? It means this. If a trader or investor were to buy bitcoin right now, the risks for professional investor would be this much. Okay. This much exactly as you can see here, as I'm drawing in a box for you right here, that's the risk. Why? Because a professional investor would say, look, if I'm buying bitcoin here, if it drops below 6,000, I will sell. In other words, I know I'm wrong. At that point, I will just get out. The risk would be about 10 percent, but guess what? If we're right, the rewards are about three times the amount. If bitcoin goes to 10,000, that is a return of nearly three times the amount of our risk, and of course if bitcoin goes all the way, let's say it goes all the way to let's say 15,000 to 20,000, then the risk return is even better. It's about five times the amount of risk. So remember guys, for professional investors and traders, it's not about being right or wrong, that's not what counts. What counts is that you keep the risks small as you can see here, and keep the rewards maximized at least three times to five times the amount I got. I hope this video helps and if you like it, please give it a thumbs up and also please remember to subscribe to our videos. The future updates as well.