Bitcoin

How Crypto Fear Is Connected To Bitcoin Bottoms


The cryptocurrency market is in complete fear for the longest time in over a year, concurrently Massive drop in bitcoin by more than 50%.

The previously trending cryptocurrency has yet to recover, leaving the market and participants in a state of extreme fear. But past data shows that fear is often a good thing for Bitcoin, helping the asset find support and at least a short-term bottom.

Bottom things: Bitcoin price action is completely correlated with fear and greed

Fear is an inferno of feelings and can even make so-calleddiamond handBitcoin holders panic selling. No emotion comes close to motivating humans to act irrationally than fear, other than greed.

Greed can be worse, blinding investors and traders to what is going on around them. When money is easy, it is difficult to click that sell button and lock in profit knowing that prices can go up dramatically.

Related reading | Bitcoin bulls and bears alike beware of potential pump and fractal discharge

Sentiments are never balanced when it comes to the markets, resulting in changes from one extreme to the other Particularly noteworthy.

Many investment legends have made their names and built their reputations based on على conflicting positionsAnd there is a reason that could not be more obvious than comparing the fear in the crypto market and the indicator of greed with the Bitcoin price action.

Fear and green correlates well with tops and bottoms | Source: BTCUSD on TradingView.com

Simple Trick for Successful Cryptocurrency Investing

Be afraid when others are greedy and greedy when others are afraid. Buying blood on the streets. All these famous financial quotes refer directly conflicting trading. Why then, can’t anyone simply control their emotions, buying when things get scary and selling when others are screaming on social media about their winnings?

Indicator of fear and greed in the cryptocurrency market Compared to Bitcoin price movement It just shows how this “simple trick” actually works and can make you rich. However, it is still very difficult to withdraw.

Related reading | Five Signs That Bitcoin Bottom Is In

The truth is, no one knows right now, and while it seems obvious in hindsight, things can go either way. What greed does while others fear and fear when others are greedy, is to improve the chances of success.

Market Reflection When things are at their best or at their worst, and always when the participants least expect them. By learning to change the way you think, traders can also learn to control these two critical emotions. This is also why in technical analysis, adherence to the strategy is the most important.

By doing this, even if feelings arise, there is a plan to come back to them and think to support why you took office in the first place: because Sometimes Fear Equals Bitcoin Bottoms.

Featured image from iStockPhoto, Charts from TradingView.com





Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button