Bitcoin Straight Down (Market Psychology)

7 Jul

Bitcoin is likely to continue straight down...

This is another instance were no significant recovery is taking place.
The lack of volume on the bounce indicates that the bulls are not ready to play.

The way market psychology works is quite intriguing... We can guess how the market will behave by considering market psychology.

What are most people expecting?
What is the feeling/market sentiment right now?

Are people in fear and panic?
Are people in greed?

Tops tend to be accompanied by euphoria, excitement and greed.
Market bottoms tend to be accompanied by extreme fear and panic.

While Bitcoin produced a small drop, there is no fear, no surprise —nothing.
People are doing fine and this is good... It is good that people are healthy and strong.
But, for us market analysts, this reveals that the correction might not be over after all.

There are tens of thousands of new participants... No! Hundreds of thousands! Nay! Millions.
Millions of people joined the Cryptocurrency market, bought Bitcoin, in the past 18 months.
These people had a nice ride and experienced a new all-time high but they have not experienced the other side.

Just as we all went through a crash after seeing massive growth and expecting forever more when we started to trade, something similar tends to happen to every new "generation" of traders/participants —that is what is most likely to happen next.

I am not calling for pain;
I am not calling for new lows...
I am not hoping that people will suffer and lose money; No!

This is a warning because I've been through the rollercoaster of down, back down then up.
I've been hoping and wishing and desiring with anxiety, my hair falling down; always positive but look at the price... Bitcoin was trading at 74,000 in March and now the price is 58,000... It is going down not up.

Seeing how most people continue bullish after four months of down, no growth; reminds me of those times when people were yelling at us trying to warn us and we continued to expect growth.

Yes, Bitcoin will grow but only after we experience this corrections bottom low.

We will know when the low is in because there will be fear and massive panic all across.
People will be talking about quitting Crypto, selling all Bitcoin and never looking back... That will be the perfect time to look for a great entry; The time to buy.

When everything becomes super-negative, in just a matter of weeks, or maybe days... That's the signal that a reversal is on its way.

When the market sentiment is full confidence even though we are having red for four months; it means that the worst part is yet to come.

Thank you for reading.
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Namaste.