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.
According to what he wrote, yes that is what he mean by that but even when there are analysis included, there is still a risk so we are still gambling here although that is much better because at least we did an extra effort. If the price of BTC is falling, it's only best to buy it and not sell because we can't be able to profit there but that approach was like investing already, not trading. Swing trading is a type of trading so analysis might still be needed there and for investing/hodling, there is also for them but it was not mostly technical rather it was fundamental. Maybe there are traders too who use fundamental analysis apart from technical.