In bull trends, bad news often marks a local bottom.
In bear trends, bad news usually signals continuation lower.
And as always, good news doesn’t change, it consistently shows up near the highs.
The issue is that we’ve been in a bull market for 3 years, and people are now conditioned to believe that bad news automatically equals a local bottom. That assumption is wrong given the current markets trend.
Study past cycles. In every bear market, once the trend has shifted, bad news extends $BTC lower rather than forming a local bottom. This is because, for the past three years, people have been conditioned to expect a bounce whenever bad news hits, because that’s exactly what kept happening.
Retail trades based on habit, not regime. When the environment changes, adaptation lags. Learn when the algo shifts and adjust accordingly.
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