๐ Bitcoin and the Emotional Cycle of the Market
In the chart, we observe the classic structure of investor sentiment:
1๏ธโฃ Optimism: The market begins its recovery, attracting new participants.
2๏ธโฃ Enthusiasm and Belief: The upward trend strengthens, driving continuous buying.
3๏ธโฃ Euphoria (point 9-10): The price reaches historical levels, but this is where many buy late.
4๏ธโฃ Anxiety and Denial: Small declines are seen as mere pullbacks.
5๏ธโฃ Panic and Capitulation (point 12-13): The price loses strength and begins a rapid descent.
๐ก Keys for the trader:
Don't let emotions guide your entries or exits.
Identify in which emotional phase the market is before acting.
Remember: the cycle always repeats, but your strategy should be ahead.
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