Is This the Beginning of a Crash?

Crucial points from this post:

  • Learn what’s behind stock crashes to understand why we might be at the beginning of one.
  • Bitcoin (BTC) is breaking out — but I’m not convinced it’ll last. Here’s why… 
  • I’ve warned about promoters for years. They finally arrested one!

Scary market? Learn how to trade through anything in my Trading Challenge!

If you’re thinking about getting into the stock market — and especially crypto — there’s something you should know.

I’ve been in the industry for 20+ years now. All that time and experience has given me a sixth sense.

I’m not saying I can predict the market. But something smells fishy to me.

You’re probably saying, “Tim what are you talking about? Bitcoin’s at all-time highs!”

Don’t bother me with that. To understand what’s really going on, you’ve gotta dig deeper…

Robinhood’s Down … But Bitcoin’s Up?

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A lot of traders don’t take the time to do sufficient market research. They just grab onto the hottest story and hope it’s the right one.

Sure, bitcoin’s up. But let’s try to connect the dots a little starting with…

What You Should Know About Robinhood’s Q3 Revenue

Traders can buy bitcoin on Robinhood. It was a pretty smart business move for the company to make.

The last time bitcoin was at its highs, Robinhood’s revenue was through the roof. Can you guess why? Nearly everyone who bought crypto used Robinhood.

But the company just released news that quarterly revenues are way below expectations.

Look at this figure of Robinhood’s average revenue per user…

(Source: Robinhood Press Release)

Share prices took a big hit. Now look at the chart for Robinhood Markets Inc. (NASDAQ: HOOD). Can you guess when the news came out?

Right after the market close on Tuesday.

robinhood stock chart
HOOD chart, 2-days, 1-minute candles (Source: StocksToTrade)

Go check out the daily chart. It’s pretty ugly.

What’s the Deal With Bitcoin?

I know BTC is at all-time highs. But think about this…

If traders aren’t buying bitcoin on Robinhood … how is the price breaking out?

Here’s my theory…

Everyone pumping bitcoin said to hold position. If everyone held, the price would go up. Theoretically, that’s correct. But only if people keep buying to push the price higher.

Now we know that people aren’t buying bitcoin on Robinhood. That means it’s managed to break out on measly volume because no one’s selling.

But what happens if we run out of buyers?

If people stop buying bitcoin, the only way to go is down.

That sounds like the start of a huge crash!

Here’s another nail in the coffin…

Take a look at Proshares Bitcoin Strategy ETF (NYSE: BITO). Buying this stock is basically like buying bitcoin futures.

BITO penny stock chart
BITO chart, 1-month, 1-minute candles (Source: StocksToTrade)

It just started trading on October 19 and it’s tanking.

Why I Expect the Worst in This Niche

Have you heard of the stock promoter that got arrested recently? Read my post about it here.

I’ve been talking about these Twitter pumpers for years now. I never thought I’d see the day one got arrested.

Don’t get me wrong — what they do is horrible and immoral. But it’s gone unchecked for so long. I figured it was hopeless.

Now that it’s happened, maybe there will be more arrests in the future. None of this can be good news for the market’s reputation.

What Should Traders Do Right Now?

© Millionaire Media, LLC

Tread lightly. Be extra careful if you’re getting into crypto or penny stocks.

These two news stories — Robinhood’s revenue and a promoter’s arrest — could be warnings of things to come.

Focus on your education. Learn rules to help you trade safe. I’m not saying anything’s for certain, but you must prepare in this niche.

That’s what my top students and I do in my Trading Challenge. If you think you’re ready, apply for the Trading Challenge today. I don’t accept everyone — only the truly dedicated. It’s where all my millionaire students started.

What do you think about bitcoin’s new highs? Is crypto here to stay or will it fall back down? I love to hear from you!

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