First of all, explain what you meant as psychological trading. Is it a type in which a trader will trade without having any bases of analysis? If that is it, it means the person is just gambling. Or does it mean a trader will not trade at all until the price of bitcoin has fallen so significantly? That is a good type of trading if that is what you mean. But this would be good only for swing traders and holders. As for scalpers and day traders, technical analysis is very important.