Bitcoin Price Crash Or Normal Pullback?

Bitcoin Price Crash Or Normal Pullback?

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Bitcoin recently had some big price moves. The high volatility can be scary, and in this video I explain why bitcoin’s price is so volatile.


Disclaimer: I’m not a financial advisor or super-smart TV pundit. I don’t make recommendations to buy or sell anything. In fact, don’t listen to anything I say.


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After gaining about 30% over the past couple of weeks, Bitcoin lost over $250 in value in 48 hours…

And this caused a major flood of emails, tweets, and calls from people freaking out asking my thoughts about Bitcoin.

Naturally, I have some fairly strong opinions about Bitcoin and why this crashed happened…

After becoming the top performing currency for 2015 and 2016, Bitcoin had a rough pullback the first week of January.

Thankfully, this is very predictable if you understand my 7 steps of a market boom-bust cycle…

1. A market enjoys a massive bull run. The bigger the gains the better for the hype cycle. It’s common for Bitcoin to see gains 100% or more in just a few short weeks.

2. This attracts media attention. All the media outlets will jump on the bandwagon and compete to be the source that pumps the positive news the most.

3. Investors and traders think it’s a productive use of time to watch networks like CNBC to make their investment decisions and end up buying based on the serious-looking TV pundits’ opinions.

4. The market blasts off in extreme parabolic fashion causing even more late investors to jump in the game.

5. Eventually, buyers dry up when there’s no one left to buy. Some people understand they might be the “greatest fool”, and begin to sell.
6. People notice price starting to fall, and end up selling quickly, causing the market to over-correct. Some investors who chased the top end up panic selling at the bottom. Instead of buying low and selling high (like they inherently know they should do, they end up doing the exact opposite).
7. After everyone has panic sold, the market stabilizes. In Bitcoin’s example, it reaches new highs after every major boom-bust cycle.

And the story repeats…


  1. That's why I like other coins like X12.
    X12 is a secure, private, untraceable currency. It is open-source and freely available to all. Unlike Bitcoin, your accounts and transactions are kept private.

  2. D1mken Sharpshooter

    That intro hilarious

  3. As usual HITBTC takes part in listing of new tokens. It’s very cool that there is a stock exchange supporting all promising projects.

  4. Weird… a year later (simply sub in a 10x – 20x price point) and this video is again exactly relevant.

  5. Christopher Collingwood

    Bitcoin 4 Business

  6. Do we get out of this bubble Chris?

  7. what about this coin…big supply is the key for mass adoption and it grow 20% in last 24 hours

  8. Alejandro Alatorre

    Awesome, almost one year after this video came out and it helped me understand what just happened this week and keep calm. Thanks!!!

  9. Welcome to America

    Great work! Do you want to get the the best prices on Bitcoin and other cryptocurrencies? Just ask how on the stream.

  10. Lol, shits funny hearing this now, was on auto play and I heard $800 BTC im like wtf this is old

  11. Thank you, Chris, for the sanity. And your intro was awesome I fell out my damn chair laughing.

  12. haha Watching this during the big correction on 12/22/17.. works just as well now as when you made it. Thank you!

  13. this video fits in current scenario as well

  14. Now is the time to buy! Great video Chris

  15. Just watched this today… and laughed at you saying $200 BAHAHHAHAHA
    We just had a $3000 crash at 30% and seems like btc is just going to shake it off again.

  16. This is a really great video! Thank you! I'm waiting for the price to crash at the moment. It's Thanksgiving 2017 and the price is $8380! It was at $7300 a few days ago. Crazy!

  17. chris. thank you so much. i went from a noob to knowing whats happening.

    thank you, immense value in these videos. i learned a lot! i have 0 bitcoin right now but if you ever come to berlin germany – be my guest, ill show you awesome places. 🙂

    oh well, off to trading!

  18. yup woke uo saw cancelled segwit panicked its going to hold new support i boght at the very top .. really woke up saw my mistake sold at a 1.00 loss fees and all so i can make market buy and got out just as it dove back down.. still waiting for the correction,,hahah. love the lesson thank you for the great knowledge!!

  19. I love the chess analogy that is how i explain it when they ask me about trading. excellent !!!1

  20. Heres the thing though……low and high is relative to the future price. IF in 6 months bitcoin will be 100k then yes buying now would be buying low…..BUT if in 6 months bitcoin is 2K then well you bought high and now you have to hope it goes back up…….Questions is how do you know?? —– Saying that i will say this is hands down the best explanation I have ever heard!!!!

  21. Jesus christ, looking back at this seems so funny

  22. You just gave me a new understanding of trading psychology that Tim Sykes, Tim Bohen, Tim Grittani, Sean Dekmar, or any other guru has yet to explain clearly. Thanks Chris.

  23. I have loss 6000₹ and I have rest 14000₹ . so what will you suggest I hold it or sell the rest ??? I am a student so what do you think I do ???

  24. its an excellent video…to understand the concept… thanks alot

  25. Guess I'm already too late as well

  26. So I guess I would start bitcoin mining & when it starts going down day by day, I will start to take the bitcoin out of the mining and keep it on my wallet, hopefully my profit is good ;D

  27. Bitcoin is going to $1500-1700 range soon

  28. great vid

  29. 2017. Same story again

  30. what the hell does "bulish" mean?

  31. where can I get the live rate chart of Bitcoin.

  32. Good job! It hit $3000 today!

  33. Bitcoin has no precedent in investment portfolios. No one can safely say for sure what it will do next. And the volatility is SKY high! But we've found that if you hold onto it for a long time, you're guaranteed an increase in value.

  34. What about now?
    I think we are just at the beginning of the bubble. We are headed to 6-7k$.

  35. there is another video where he called the pull back at 2200 btc it happened like clockwork at 2300 pretty close around there, so he defiantly knows what he is talking about.

  36. Good stuff! Thx! Subd

  37. I like your chart! Looks good to work with.

  38. BTC is over $1500 today, 04 05 17.

  39. it happen again rite now

  40. A great site to win or earn Bitcoin is SHARKOIN

  41. I always find it amusing when people refer to Bitcoin as a currency, as if the term 'Bitcoin' referred to a valuable item rather than to the network protocol. I do have to admit that 'Satoshi' was pretty clever in selling it that way, though; I imagine that 'untraceable electronic cash that can be used anywhere in the world' sells a lot better than 'secure distributed accounting system' would have, even though it is a much more accurate description (and far more important and useful than any cryptocurrency could ever be).

    Unfortunately, the really important and revolutionary aspect of it – that it is an abstract valuation marker the relative worth of which is negotiated with each transaction – is undermined whenever someone talks of it having an 'exchange value'. That isn't how it works, and it really weakens the Bitcoin protocol's real importance. However, I can only assume that people aren't yet ready to actually grasp the true significance of a trade system (other than direct barter) which doesn't involve any kind of currency at all, so… shrug

    The takeaway? Bitcoin isn't money – Bitcoin is a technology demonstrator that shows that money is obsolete and has been for years. Mind you, it isn't doing anything that banks haven't been doing since the 17th century – back when it was realized by the Dutch stock brokers that it was easier to send IOUs than actual gold – but it does it in a way that requires no pre-establishment of trust between the parties, and that is revolutionary.

  42. Michel vasconcelos

    Earn easy way 0.25 btc

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