Interview with Charlie Burton: Why $20.8K is a critical level for Bitcoin

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What is going on, everybody. Welcome to Market Talks here on cointelegraph. I am your host for the show. I'm Tim. I'm from the YouTube channel Coffee and Crypto. But I want to just welcome all of you guys to this show on Market Talk. This is the show we talk about everything you need to know about in the crypto space and we interview analysts and experts to help you guide through this market. And I'm super honored to be joined today by Charlie Burton. And if you guys have never heard of Charlie Burton before, he. Here's a little bit about who he is. So Charlie's a professional trader with 24 years of experience in the trading game. He's done it ever since 2001. He is the founder of Easy Trader and Charlie Burton Trading. He's also undefeated in the annual London Forex show live trade off for the last five years it was running. He has also been featured on the hugely popular BBC documentary Trader Millions by the Minute. Charlie is one of the very few trading educators who is also a professional money manager trading FCA regulated capital. Let's go ahead and roll his clip. What's going on, Charlie? How are you doing today?

I'm good. Nice clip. I've never seen an intro like that. Thanks ever so much for that as quite a surprise seeing that.

Yeah, I think it's funny because every single week the guests that come on, they always, they look at that clip, they're like, oh my gosh, that was fantastic. So shout out to that graphic team and the, the whole production team over at Cointelegraph for always putting together some great stuff. But Charlie, I want to go and jump in with you. As people might notice from the title of this video, we're looking at bitcoin in some key levels and one that we're going to keep an eye on is about 20,800. Now I know in getting to talk with you a little bit before we went live today, you, your experience is a lot more trading in other fields like Forex and the stock market and whatnot. But you do talk about and you deal with Bitcoin and Ethereum a good amount. So I want to just start off by getting your overall take about what you think the crypto market looks like right now. And let's specifically talk about bitcoin and potentially that $20,800 level.

Yeah, back in, I was being interviewed back, oh, I don't know how many months, months ago it was now when bitcoin was up at 38,000. And we were talking about at that stage the potential for bitcoin to come down to 20, to test those 2017 highs. And no one wanted to know about that at that stage, of course. And so you end up just getting a load of negative comments at that stage. So we've got down there and I think that it was a great level, psychological level. Everyone was watching that zone there. We overshot it a little bit. But my personally, we were talking just before coming on live and I know you're going to, we're probably going to discuss this, but I guess it depends. This level in bitcoin really is going to be important in relation to what's going on in the stock market. If your belief is the stock market is going to go higher from here, then that's probably pretty good news for bitcoin and the crypto asset class as a whole. So my view though is that I'm a little bit more cautious at the moment towards the stock market and we can discuss that if you want to. And so therefore I am a bit more cautious overall towards bitcoin right now.

Yeah, that makes a whole lot of sense. And like you're talking about, you know, we had that $20,000 level. That was what a lot of analysts were looking at. And as you said, we overshot it. But that, you know, that happens if you're looking at like weekly charts and whatnot. Wicks happen all the time. Yeah, but you know where we're currently sitting, do you, I mean, so from your perspective, do you like to look at those stocks, the charts on the stock market and then say, all right, well we can utilize this for direction on the bitcoin chart. Or do you spend a lot of time looking at the bitcoin chart specifically when maybe counseling people on trade opportunities you might have over on bitcoin.

I, I'm, I'm massively into correlations and intermarket analysis and I think that any trader worth their soul should do that. I don't, I'm not a believe blinkered trading in just looking at a single market, whatever the market is, without looking at some of the other interrelationships. So whether you're trading bitcoin and then my wife's calling me there whether you're trading bitcoin and she must be wanting to cook me dinner. I don't know. Oh no. Oh no. I'm the one dinner. So yeah. Or you're. And therefore looking at what the stock markets are doing or if you're trading the dollar and looking at what all these various different asset classes are doing in relation to the dollar. So for me, seeing what's going on in the stock market and the byproduct of that is seeing what's going on in the bond market as well. It all triggers movement elsewhere, including in bitcoin. So I wouldn't for me solely trade bitcoin without taking a view across a couple of other asset classes. Having a view on key level in for example, the stock market and elsewhere like in bonds and what bond yields are doing as well. Interestingly though, I must admit I was wanting, I was desperately wanting bitcoin to get up to 28,000, that 28 to 30,000 level where it come down and found some support before it broke down lower. So I wanted it to come back up and retest that a bit like Ethereum had managed to do a great run back up to 2000. I just would have liked to have seen bitcoin from a technical perspective just rally that little bit more. But we'll have to see. Maybe it's still going to go there. But, but yeah, that's how I tend to look at it. It's the stock market is all important. Yeah, I think that's correlations go and at some point they, the correlations may actually disappear and we do see that in asset classes that they're highly correlated. And then all of a sudden the, the correlations go and maybe that's coming at some point again in the future. But at the moment we, those correlations are fairly, fairly firmly entrenched.

Yeah, and we were talking about it before the show a little bit, but I think it's, you know, interesting. You talk about you wanted to see bitcoin get to that $28,000 level, you know, we've talked about on this show before and I talk about it over on, on my channel, that 28,000 to about 30,000, you know, again, a zone that used to be support during, you know, the last drop we had before the one that came down to 17 6. But you know, I want to hear your take on it. Could we talk about volatility? I think a lot of people, you know, after we kind of rejected right there at 25,000 are like, oh, well here we go, we have to go to set new low. And it's like, well, no, I mean, remember this is crypto, home of the volatility. And you were talking about this before the show. That volatility, as much as we love the volatility up, people don't seem to love the volatility down and it has some circumstances that follow it. So what are your thoughts about that overall? And if you have years of experience in the stock market to where you look at the volatility of bitcoin alone, let alone going into the other cryptos, the volatility you see as a trader when you go from stocks to crypto is a very, very favorable thing to see, is it not?

Yeah, well the thing with what we've seen with the likes of bitcoin, yes, we have had a lot of volatility and the market need, that market needed a clear out. We all know that was a lot of leveraged money last year over here in the uk even which we're not as much of an adopter. There's certainly the youngsters are of trading cryptos but there's too many people who are uneducated in the market who are trading it in their, in their 10 minute work breaks. You know, I, I went to see my, my, my car dealer and he said should I be investing into crypto assets? Because all he's the dealer principal at this BMW dealership and he said that all my staff, they're all trading cryptos in their breaks and stuff. And then I've got other friends of mine who are saying I've got people quitting their jobs because of, they think they're going to make loads of money, more money. And they had been trading cryptos but I think they got a rude awakening there. One thing that it's all very well when the markets are going up but because of course a rising tide lifts all ships but it's when that tide goes back out again that people get caught and it's no different to what was going on in the tech boom in the late 1990s. People were quitting their jobs to become day traders. That's when I started in the late 90s and of course that then came home to roost as well. So I think with the market needed a bit of a clear out anyway. So yes, we had that volatility on the way down and then it sort of disappeared, dissipated to an extent. What we're seeing in bitcoin is plenty of chop, aren't we? And I think it's just the market doing a job and I always say that the market's there to try and put off as many traders as possible, traders and investors. And it's like a bucking bronco and it's trying to shake them off and it'll do it by two ways. We'll have these sharp bear Markets, if you will, or pullbacks in price. But also it can do it via boring people out of positions as well, or boring them out of the market. And I just think it's just the market's natural process of basically a flush, it's a flushing process that I see here. But with the sort of volatility we're talking about here, I think the volatility recently has come down, although then you go and get a 10% update or down day in, in these, in these currencies, sorry, in bitcoin there. But it's quite difficult to catch for a lot of people. So they're not going to catch the absolute bottom. They're not going to catch everything unless you're a very short term trader. So in the main there's probably still a lot of uncertainty out there as with regards to whether bitcoin, this is the bottom, so to speak, that we've just seen in the last couple of months or, or whether there's another leg to go. So I think the market's doing a good job with people in creating that uncertainty.

Well, I think that's a great transition point we could make right there because I'm going to ask with what you're seeing a stock market and we talked about there's a lot of correlation, whether that correlation is coming to an end or whether it's going to continue. Crypto is kind of correlated to the stock market. Two questions I have, and you can answer this in whatever way you want to. What do you think was the catalyst for the stock market and therefore crypto to have a pretty aggressive bear market that we've had now over the last couple of months? And then also that question right there, whether we've hit the bottom or what not, what are you looking for in the stock market world and if bitcoin stays correlated to it in the crypto world, to know that we have in fact bottomed out and we have nothing but up to go from here?

Well, to answer your first question, and by the time I get to the second question, you'll have to repeat it because I'm getting to an age I'll have forgotten by then. But yeah, from a sentiment perspective, as you know. Well, there was a huge amount of euphoria in the markets. Whether it's a stock market, property market, crypto assets as well, there was a huge amount of euphoria in the market. And it's always a concern to me as same for yourself when you see too many people getting too excited. And I'm sure You can see that in the comments that go on on your channels. You'll see you can sort of pick up on that sentiment even among, among the people who know what they're doing. And so I think there was a lot of euphoria there anyway. But euphoria doesn't mean equal bear market. It's just a condition that is met. And we've seen that, what with Meme stocks as well with the, the games, you know, the people trading Gamestop and all of that sort of stuff. And then we just saw that happen again in Bed Bath and Beyond, for example, just last week, where these people are piling in on these heavily shorted stocks. So the backdrop was there from a sentiment perspective for huge euphoria. We've got Dogecoin being created for a laugh and then it goes up 15,000%. I mean we're all going to be looking back in a few years time saying, oh my God, yeah, I can't believe that, that all that stuff was going on. So I do think from a sentiment perspective we had, the ingredients were there. From a macro perspective, of course, as we got into the beginning of this year, the S and P topped out in the first week of January. And so the market quite often follows a given narrative. And so it will stay on track with the narrative even there might be macro conditions that are starting to arise and the market will ignore those until it chooses not to ignore them anymore. And the beast that was there was of course inflation and the path of rising interest rates. And so that was probably one of the bigger catalysts to start. And then of course it starts off with just a down week, doesn't it, in the stock market. And then all of a sudden the press and the reporters start to talk about it. And then it becomes a bit more of a self fulfilling prophecy. The stock markets were way overvalued. But just because markets are overvalued doesn't mean they have to go down. There has to be a catalyst. And we've seen that building. We've been talking about inflation since of course, last year anyway. But it just got to that crescendo and now we're seeing the consequences or have seen the consequences of that. So that's what's brought, I guess that selling into the stock markets. The stock markets needed again, needed a flush out. And so that was the, I guess the catalyst for the move down that we've had in stocks. The big question is going to be whether that's it. I think in the short term the markets swing in sentiment, don't they? They go from euphoria in the short term to pessimism in the short term. And certainly as we bottomed in the S and P in June, July, July, we'd got to that sort of extreme of pessimism at that point. And so of course, we can look back now and say, yeah, we were due about a good healthy summer bounce. I guess the next question is, with the economic backdrop that's going on, is, is this really over? As you know full well, the S and P has just done a, what, a 23, 24% bounce. So far off the lows. But as Michael Burry said put out recently that that's, that was the average bear market rally in the 2000-2002 bear market. That was the average rally was 23%. So we don't know for certain as yet whether this stock market bounce we've had so far, you know, is the beginning of a major new bull market or, or is just a bounce the one thing or we can discuss. But there's just a lot going on around the world. And so at the moment, and I think with that backdrop at the moment, of course, the market is a forward discounting mechanism. However, we haven't even reached recessions in some of these countries, certainly here in Europe as yet. But that's coming. And so to quote the Game of Thrones, I guess we've got the winter is coming. And so I just, I'm not a pessimist. I'm actually always pretty much, I've been taught to be a cautious optimist in the markets because there's always money to be made whatever way the markets are going. But do I see the potential for stocks to have another attempt at those lows? Yes, I do.

Yeah. And that's kind of. You're starting to get to the second part of the question. I know you said you wanted me to repeat it. It is the, you know, we talk about what, what kind of called the top, and I loved your explanation there, is that, you know, they, it was overextended. It was. But it needed some form of a spark. And that's where inflation came in and really gave us the spark to come to the downside. So now I'm, you know, we're talking here to somebody who really wants to get into trading. They want to do more trading, as you said. You know, when you're talking, you're seeing people every single day wanting to quit their work or they already quit their work and they think they can make a Full time living and trading. What would you say to someone who has those aspirations based off of all the bear markets and the bottoms you've seen in your history? What are we looking for to know that the bottom finally is in? And I know that's a really hard and loaded question, but these are the questions that people with 20 years plus of experience get the answer.

Well, I guess if we quote one of the most famous investors, the most famous investor in the world, Warren Buffett, then he once famously said that when there's blood in the streets, then that's the time to buy. So I guess we then have to ask ourselves, do we think there's blood in the streets as yet? My view, it's not a guarantee that we have to have blood in the streets in order for the market to completely bottom. But I don't think that we've necessarily got to that point yet because let's just take Bed, Bath and Beyond and what just happened there just a week ago on its roller coaster ride and this massive speculation that we are still seeing in the stock markets and elsewhere. And so coming back to that and crypto, I know that we've had a really good flush in crypto, but if my view took going back to market correlations and the crypto world does stay correlated to the stock markets. So if the stock markets are going to come down, which is, I'm leaning towards that until it proves otherwise and we can discuss levels or whatever, but I still think from a macro perspective there should be another flush in the stock markets all the time. Bitcoin, Ethereum, stay mainly correlated to the stock markets. If that's what's going to happen there in the stock markets, then I would be cautious at the moment. So what would I be looking for? What you're looking for is you want to speak to the average Joe in the street and for him to be saying to you, I invested into crypto cryptos once and I made a lot of money and I lost it all. Don't go there. You want to hear people saying that sort of stuff to you. Because when you're hearing lots of people saying, oh yeah, I did that and I lost money, that's probably a good time to start.

That's a great answer. That is a great answer.

Yeah.

And I think, I think you're absolutely right. I think that I think people want there to be blood in the streets. But I think I actually agree with you that it's almost like we got pricked and we don't like the feeling. But maybe There's a little more to go and I've noticing because you know, I don't have the years of experience you do in forex and stock market. But when I do my back analysis on bitcoin specifically because it is the oldest crypto and you know, being the crypto game, that's the one that the TA analyst, the other analysts we really look at and I've noticed that a lot of times the bull markets finish with blow off tops. Now we didn't have a blow off top here when we peaked in 2021, but when I'm looking at the other three major bear markets that we've had in the history of bitcoin, they are not like V bottoms or you know, they don't have a sharp decrease. They actually kind of bottom out and then move sideways and have another point where they come down to similar levels where the original pain was. And so with that analogy, you know, I've kind of, you know, talked with my, you know, my channel. I told them, hey, I don't know if we're going to go lower. You know, a lot of people are calling for like 11,000, 10,000. You know, the people who really aren't bitcoin, you know, they don't like bitcoin, they're like well, 3,000. Again my point is I don't know we have to go that low. But, but I think that we are going to be revisiting somewhere around that 17,000 because that's we see in history. What are your thoughts about maybe comparing your history with traditional markets and bitcoin? What are your thoughts about how bottoms of bear markets usually look?

Quite often a bottom in a bear market will as you, you quite rightly say, the price will make a low and then it will either make another marginal new low. So if the price has come down and made a low here, it will come back and do a retest. So it's that retest that we're often, we often see in bear markets. If you look at the 2000-2000 stock market crash, then if you look at the obviously the financial crisis as well, then usually there's a retest. Now that retest will either come down and make a marginal new low and then you'll see like in technical terms you'll see a divergence with your traditional sort of indicators that people might use like an RSI or MACD or something like that, or it'll actually make a marginal new, a marginal higher low and then go higher. So but we need to see that that exhaustion point where more investors throw in the towel because that's better for everybody else. So to be, to be selfish in that regard, that you want those people, the weak hands, as we call them, we want the weak hands out and the stronger hands to remain. So. So for me, if the market doesn't necessarily have to go down and as you've just said, go to 10,000, but we need to have the same mindset amongst the masses as if it has gone to 10,000, so if they say, oh, no, here we go again, and bitcoin's back down at, as you say, 17,000 and a lot of people say just throw in the towel, great, or it bores them, as you said. Sometimes markets, especially in the, like you said, and we've seen it a lot in bitcoin, it will have a move down and just go sideways for ages and it will put people off, it will bore them out as well. So I've been interviewed before and the market was just going sideways and lots of people just weren't interested. And yet it was gearing up fun enough. I think it was in about that April, May time of 2020, and there wasn't a lot of interest at that point and it was deemed to be a bit boring, bitcoin. And then of course, that was a great time in that sort of April, May time to be getting in, because then we had that take off over the summer, then it consolidated again, then really kicked off in the autumn when lots of the big funds had announced that they were starting to invest as well. So, yeah, we still need to, from a sentiment perspective, not necessarily from a price perspective, price doesn't have to go to 10,000, but from a sentiment perspective, it has to feel like that. And so that's what we want to see. So I agree with you. We've had a bit of a prick. I would want to see, you know, a little bit more. And so where people throw in the towel a little bit more.

I like, I like how you even put that there. That it's, it's about the sentiment, it's about that feeling. Because that's exactly what we saw. That timeline you were talking about when we dropped in April and May, you know, based. I think that when you're talking about the catalyst, we were overextended, we knew we needed to drop. And then Elon made his announcement and said, yeah, hey, guys, you know, we have some environmental concerns about bitcoin. So Tesla is going to be, you know, not accepting bitcoin anymore. We're going to, you know, sell some of it anyway. So the price dropped and then there was that feeling. We dropped to about you know, $29,000 all the way from 64. And then we started moving sideways, getting boring. And I remember the sentiment in the market because we only made it back down to about 28, seven, something like that. I don't remember. The bottom that we finally ended up using as a spring to rally was not that much lower than the original one, but there was that sentiment in the market. Here we go again. We're going down to 20,000. I'll come back when we hit 20,000 in price. And of course, now we've gotten down that far, but a lot of people thought it was happening back in the summer of 2021, and it took till the summer of 2022 to actually happen. So. And this. I didn't have this question planned, but I think I told you beforehand. I like to, after hearing you get to answer some questions. I'm like, man, I'm really curious about this. Something that I'm really big on. You know, when I was really starting to learn, learn the technical analysis and how to read the charts, you know, I found a lot of the teachings of Wyckoff. And so I'm sure with your 20 plus years of experience, you. You've done a lot. What are your thoughts about the teachings of Wyckoff, the accumulation phase, the distribution phase? Do you have any thoughts about that happening right now in the stock market, in Bitcoin or any of the other traditional markets?

Yeah, I mean, it's, it's part of ta. And so, yes, you, you get, you do get these, those, those accumulation, as you. As you call it, and quite often within. At the end of that accumulation phase, there might actually be that final spike down which. And we see that a lot in markets, whether it's in traditional asset classes as well as in cryptos as well. And that marks the end of a move. So, yeah, to me, that I don't even label it as. I know what you're saying under Wyckoff of theory there. And so you. Then you get that final markdown in price and then back up. But, but I just see that as. I just read it as, as price action generally, where you're just having that final flush. But. And that's why I talk about, you know, markets boring people out of prices out. Out of. Out of the. An asset class there. But in that regard, yes, it's. It's good, solid price action really in the market is doing its job. I Think it's always. There's two things. There's two analogies I often use when it comes to markets. One is, as I've already said, the market is like a bucking bronco. It's trying to do its best to kick you off. If that is a bull market, it's going to do things like we've just said, that final, that final spike down to take out anyone who started accumulating. Because the retail, when you go through those accumulation phases, retail are going to start buying. But the problem is if they're using stop losses, they're going to start putting their stops below that, that range there. And that's why so often at the end, you'll get that final flick down to take out all those stops, only for it to then go, go higher again. And so the market will do it that way. But the market also, I always liken it to having a little devil on your shoulder. And he's talking into your ear all the time. He's constantly nattering away, trying to goad you into doing the wrong thing. So what you've got to do as an investor or as a trader is think, okay, what are the masses out there thinking right now? And to me, that's part and parcel of what I'm doing, doing all of the time. And we can pick up on that from going onto social media and all the channels that we have available to us to try and tap into that sentiment because we've got a little devil on our shoulder saying, go on, in you go, in you go, in you go. This is so obviously going to go up. But if that's what we're feeling in our gut, do you not think that that's what everyone else is feeling as well? So quite often it's when our gut instinct is saying is fear, our natural fight or flight responses are kicking in. So often that's the time when, when it is the right time to go in. So coming back to what you've just said about these consolidation phases, and then if you do get that final spike where you're thinking, oh, no, I really don't want to be in this now, look at this, this move down, we'll keep watching because if that reverses, then that could well be the right time, because when in the pit of your stomach, you don't want to do it very often, they're the best trades.

And I love that so much, Charlie. And that's, I mean, what you were just talking about right there, that's, that's what I found. So Fascinating about the way Wyckoff taught how to watch the markets because, you know, everything you just described right there, he was like, you know, watch for, watch for them to manipulate the right times. Like, he talked about, like, news articles. Like, he's like, you're gonna find at the peaks, you're gonna find news articles posted that are really bullish. And, and it's going to make a lot of the average retail investor say, oh, let me purchase. But then the, the ones that know what they're doing, the whales, the institutions, they're going to sell and they end up, they make it boring because you just feel like you're selling every single bottom, you're buying every single top. You're like, I'm done with this. And then they get that sentiment going down. And as you said earlier, it's like that sentiment of like, hey, maybe we didn't get all the way down to 20,000 during the summer of 2021, but it just felt like, man, we're a week away from hitting 20,000. And that's when they're able to jump on it. When he calls the spring, that ends up kicking you back out of that entire channel. You just spent months sitting in, if not years sitting. And I know, I know this teaching is also for long time frame stuff. I think it's just so cool. I, I love, I love getting to go find the history of that stuff. Then talking with guys just like you who just watch that play out time after time after time in the stock market world, that's. That's fascinating.

It doesn't even matter what, what style of trader you are, what theory you use. You know, there's a lot of Elioticians I don't know about in certain crypto, in, sorry, in Forex, but I'm sure probably in crypto as well. A lot of people like Elliott Waves. I don't use Elliott Waves either. But, but it's all the same. We're reading price, action, whatever it is that we're looking at, what we're looking at when we, when we stare at a chart, we're looking at mass human psychology, aren't we? So if we can get away from saying, oh, that's a candlestick, that that's an engulfing candle, and yes, that's all that stuff's important, of course, from a technical perspective, but we got to see through it. It's a bit like, you know, the Matrix. And we've got to read through that and also be able to remember that what we're looking at when we're staring at a chart is human behavior and if we can see through the, the candles and you know which we need to see those patterns, then we're then seeing mass human behavior. And there are times, not every day, but there are times especially when the market's getting emotional. Like you said, when we, when we're getting closer towards those tops or closer towards lows, when we're getting extremes of emotions, then that does show up on the charts.

That's so good. I'm a transition. I see two questions here and these are good questions in the chat that I want to get your answer on. The first one I see here is from Inevitably lc so shout out to Inevitably LC saying how can we master cycles in the market? So we've kind of been discussing that a little bit but you know, what is your advice to anyone out there trying to do at least part time trading? You know, like maybe they're not quitting their job just yet, but they'd love to move towards full time. How did they master reading the cycles that happen not only in the crypto space but in all the, all the markets?

Oh God. Well, I'm not someone who follows cycles either as such. I mean I don't know what the, quite the context of what she means there but certainly if we just take someone who's, let's take your typical person who's getting into trading, we call it trading here, but they've got a full time job and they're looking out, maybe they've got a five year plan plus to get more heavily involved as they go forwards. Possibly one of the first things that, or certainly from a long term perspective I'm a big believer in dollar cost averaging anyway if you believe in an asset class. So if you believe in the longer term future of Ethereum, a longer term future of, of Bitcoin, then the big assets there, then dollar cost averaging is a great long term investment tool anyway. So when as bitcoin comes down to 20,000 you're having a nibble into it so you're accumulating some of it then and then if it comes down some more or even just on a time basis you just say right, once a month or once a quarter, I'm going to put another however much money you're willing to put into that asset class. So I'm a big believer in, for people who are looking over the longer term that dollar cost averaging is one of the best investment techniques you can do because it just mops up weakness in price and strength as well, so that would be the first thing that I would say outside of that to give someone advice. What I would do is from if they're looking at the charts, I would pick three time frames and just use those and try to combine three time frames. So a lot of the time I spend actually looking at like a monthly chart, a weekly time frame and a daily. And so what we're looking for is to, it's an old expression, fade the short term trend in favor of the long term trend. I'll say it again. So we're looking to fade the short term trend in favor of the long term trend. So if I'm using three time frames, a monthly, weekly and a daily. If the monthly trend is up then, and the daily trend is down, then I want to be looking for weakness on the daily trend in order to buy in favor of that overall longer term trend. And that's essentially if you go and have a look at the charts of bitcoin, if you look at the weekly and monthly charts, that's essentially where we're at right now. If you've got that longer term view, then you're fading this shorter term volatility and pullback in prices over this last year in favor of the longer term view. From a technical perspective, Crikey. You could then go into all sorts of proper technical strategies that I teach and stuff like that, but I can't do that in a conversation. Yeah, it's way too technical.

Very true, very true. Two, two questions here from the same person. So I'm going to read them. I'm gonna start with one of them. We'll get to the other one. You know, I think this is out. Alpha Ping or Al Faping. I'm sorry, I'm probably butchering the name. But GmbH, which type of sentiments drive the price the most? Because we have been talking about sentiments here. US sentiment or global sentiments. Which do you think is. Is over overall bigger? Because it does at times, especially with I'm here in the United States, sometimes it feels like we live in this bubble of like man, whatever's happening in the US government, whatever happening, you know, here in the stateside, that's what's affecting the whole space. And then we forget about, you know, Europe is still a big mover and China's a big mover. And you know, there's lots of different places that have big impact on markets. But which would you say is the biggest sentiment to be keeping an eye on?

I. Yeah, there's, there's many facets to this question or to the answer to this, certainly the US is still the largest economy globally, so it's still the driver of much of the global economy. So that's always, certainly in my time of being a trader has always been the first thing to consider. So even for me over here in the uk, I'd spend a lot more time trading the US markets than the uk. It is the driver. And so if we are looking at sentiment, we can use that and we could talk about what's going on at the moment in the US economy versus other countries around the world as well. So it does lead. There's the old expression, if the US catches sneezes, the rest of the world catches a cold. So I do think that, yes, an easy answer would be to say yes, look at the US first and then look around the world. But I think that the, the broader answer would be that we're all intrinsically linked anyway. A bit like trees, roots and so they can communicate has been proven via their root systems. And so we're so, we're so linked now more so than ever. And even within the last 10, 12 years or so with the, with the acceleration of social media and access to information. When I went full time trading in 2001, you just talked about newspaper articles or magazine covers. That was how I used to pick up on sentiment. Now we've got it, it's on our phone, it's there right in front of us, going on to Twitter or wherever. So it is a different world now. And so the whole world moves that much faster and much more in sync with one another as well. So because assets are flowing around the world so much faster than they probably ever have done. So yeah, that's my general view towards sentiment that yes, I, I still look towards the US first and foremost but, but whatever is going on there then tends to trickle everywhere else.

Anyway, that's, yeah, that is, that is really good. I, that, I like how you sum that one up for sure. So same person asked a different question and I, I really like this question. You know, this is what I've seen actually pretty often from a lot of different people. But anyway, they said I trade short time frames very successfully. So let's just stop right there. That's awesome. You know, good for you. However, I feel I miss bigger swings with long term frames. Should I try to trade bigger picture based on sentiments or should I just stick to what I know? That's a, that's a good question. What is your thoughts on that?

It is, yeah. I've always been a believer in playing to your strengths. And so if they're doing really well in the short term, the thing is you almost can't have it all. So if you're really good at short term trading and then you want to switch to because you then see, oh, but I got into this move here, look how much further. Yes, I took my profit out and I'm doing that frequently. But I'm missing out on these big moves that are going for so much further. It looks simple on the charts with the benefit of hindsight, but it is a different mindset from a sentiment perspective. You need to have a lot of patience to then hold on to those trades and to not want to bank the profit as, as price moves in your favor. So it's not. It does require a different attitude towards that sort of trading. I mean, that's the sort of trading that I do more and more of because I love the mental challenge. I don't get a mental challenge anymore of doing short term trading. You know, when I say short term trading, I'm talking about being in and out within a couple of days or even intraday trading. So I don't find that, that mentally challenging. So for me, trading is much greater than just trying to make money. It is a mental stimulus game for me as well. So I always use the story of I used to compete many years ago karate internationally, used to fight over different countries and compete at international level at times and. But I was learning or had learned a martial art which has its roots 3,000 years into our history. So I used to love learning some of the older techniques that were up to thousands of years old. But the competition element of the martial arts is just that very shallow bit across the top. So I used to like it for the fun of it. But from a mental stimulus perspective, I like the depth of learning something which has been passed down from generation to generation. It has all that history behind it. So coming back to the market, it has to be deeper for me than literally sitting in front of my screens and trying to make money every week or every month or whatever. So therefore I found in my journey over this last 20 odd years is that holding on for the longer term trades I get that mental stimulus because you have got to hold on, you have got to sit through. When you're in a trade, all of a sudden a piece of economic news comes out which sends the market back against your position and you've got to sit through that and stay true to your trade. And I love the whole mental challenge of that sort of stuff. So for him, I'd say at the moment, stay with what you're doing, bet what you're doing really well at. If you want to go for that, don't make a big switch, just do it on the side. One of the best things you could do is have stay, have two accounts, have your account that you're trading all your short term positions on and have a separate account for trading and just start slowly and small on the longer term stuff.

That was a very fascinating answer that the longer timeframe challenges your mind a little more. That's actually, that's actually true. It builds patience, it builds, it makes you actually have to do a lot of research. Here's one thing I will say and what I've found because I've done a lot of, I've done intraday trading, you know, day trading where I'm in and out every couple of days, you know, and then, and then I do have a portfolio like we just mentioned. I, I try to get close to bottoms and I dca at bottoms of markets and then try to DCA out at the tops of them. However, what I also know and anyone in chat, I don't know if you had days like this too. What I found when I was doing that intraday trading or day trading is sometimes the stress they can put on you to constantly be looking for a good spot to get out. You know, there's times my brain would just wake me up in the middle of the night and, and it's like I gotta go check the chart right now because I gotta see if I can get out of this position or find a good position to get in. And it wasn't even good for my long term health. So it's, it's almost like on one timeframe it challenges your brain more to go longer timeframe. But you also can live a healthy normal lifestyle cause you got time to act versus the other ones a little easier. But it could really be a dinger on not only your physical but also mental health to be able to constantly be in those shorter timeframes. But I loved your answer. Hey, stick with what you're good at for now and as you get going maybe expand how you're able to do that. Great, great answer. That is, that's all we have time for today. This was a great interview and I'm so glad that you came on another hour. I think I know this is, this is really good stuff. We'll have to have you on again real soon. But for anyone who's wondering and watch, this was like, man, I need to know more about Charlie. Where can they be following you? Where can they spend more time listening to you? What would you recommend and direct them towards?

You can go to my YouTube channel. So it's Charlie Burton trading on YouTube. And so I'm putting out regular free content on my YouTube channel. So a lot of stuff on Trader mindset, because that, to me is more important than any of the technicals, really. You can have all the technicals in the world, but they won't do you that many favors if your mindset's not right for it. So I do a lot on. On that. I will talk about the markets, of course, on that channel as well. By all means, check out my website, charlieburtontrading.com and I'm on Twitter at Charlie B. Trader, so there's plenty of ways to check in and see what I'm up to.

Awesome. Well, thank you so much, Charlie. Once again, that is all we have for you guys in this video. But if you loved this interview and you want more content just like this, the first thing you do, just smash that, like button. It's really nice and easy. Subscribe to the channel for all this content and leave comments down below letting us know what you loved, what you want to see more of, so that we can continue to make this show phenomenal for all of you guys, because we want to see you succeed in the crypto space. That is all I have for you here on market talks, but I will see you guys next week. Peace.