Bitbull Explains the Trader Psychology Behind Crypto Losses

Last week, bitcoin briefly reached almost $85,000. A few days later, maintaining a price above $80,000 was a struggle. Those who had wagered on the bounce-back were instead meeting a new selloff.

This shift occurred while leveraged positions stayed high and spot demand weakened. In its most recent market report, Glassnode stated that bitcoin's futures market is still open to significant price shifts.

For Bastian Keller, the figure widely recognized as Bitbull, this is exactly where many investors commit their most expensive errors. During a conversation with BeInCrypto at the TOKEN2049 conference in Singapore earlier this month, he detailed why trading psychology can be more critical than calling the next price direction.

Keller established Bitbull Trading and TradeMania, a community and software offering for traders. TradeMania maintains a commercial arrangement with Bitunix, which Keller described as its main exchange partner.

Simulated Trading Can Give Beginners False Confidence

One of Keller's more strongly held and debated positions goes against typical advice for new traders: use play money first. He argues that paper trading builds an unrealistic sense of ability because the user faces no real danger.

"When it's come then to real money, yeah, it's completely different," Keller said. "Emotions coming in, FOMO coming in, and then end of the day your your brain decide what you're doing."

The logic is direct. Someone can remain calm while holding a losing trade in a mock account. Put actual savings at stake, and fear takes over the decision-making.

His recommendation is to start with tiny sums of genuine capital to learn that pressure. "You can trade with $10. You can trade with $50," he said.

Paper trading still serves a purpose for navigating platforms and trying strategies without cost. Keller's criticism focuses on whether it prepares someone for the emotional load of a real loss.

The Revenge Trading Loop That Destroys Accounts

Keller's understanding of this dynamic was shaped by his own financial setbacks. Before entering cryptocurrency in 2018, he traded Forex. He told BeInCrypto that he was scammed and struggled with the experience.

That background formed what he describes as the trading "circle of death." A trader records a loss. Instead of accepting it, they immediately enter a fresh position to claw it back. When that fails, the risk gets ratcheted higher.

"Then you're going to your revenge trading, you lose more, you lose more, you lose more, and then everything is gone," Keller explained. "I was one of these guys before."

Revenge trading becomes especially destructive when leverage is involved, allowing positions far larger than the deposit base. A fairly modest market swing is enough to erase the capital.

Bitcoin's Current Volatility Raises the Risks

The most recent bitcoin downturn shows how fast trader conviction can evaporate. Open interest in bitcoin futures rose from $36.5 billion to $37.5 billion in the last week, according to Glassnode. Those holding bullish positions paid elevated funding rates even while the price dropped.

Simultaneously, spot buying softened and a growing number of investors turned to options for protection. The market also has two large events ahead: the Federal Reserve's interest-rate decision on October 28 and the US midterm elections on November 3. Analysts anticipate a rise in volatility.

For traders, this creates a difficult terrain. A sharp rally can encourage heavy purchasing, while the next reversal can push forced liquidations. Keller believes newcomers complicate things further by constantly chasing short-term movement.

"You don't have to do scalping," he said, encouraging traders to consider slower strategies that do not require watching charts every few minutes.

Can AI Stop Traders From Repeating Mistakes?

Keller is attempting to tackle some of these problems through TradeMania. He stated that the platform is creating tools that analyze historical trading and provide AI-generated feedback on behavior.

"You can track your trades and you can communicate with an AI agent as well," he explained.

The intention is to let traders recognize recurring errors before they become expensive patterns. No independent verification was provided in the interview that the AI system leads to better trading results.

For now, Keller's most useful counsel stays noticeably simple. "First of all, don't trust everyone."

The warning covers trading influencers, automated alerts, and market forecasts. As bitcoin enters another stretch of uncertainty, managing risk could be more important than correctly predicting the next price move.