Psychology of a Market Cycle | Where Are We in Crypto?
Today I was browsing Reddit and came across this... look familiar? Well in my opinion, it looks very similar to the crypto market cap history.
Where are we?
That's the billion dollar question, where are we? Many believe we are in the anger stage as most of the panic sellers have sold already, and I agree! I feel like we're in the anger, moving towards the depression stage. If crypto can hold at around $250 billion market cap or falls to around $200 billion, I feel like we could see another bull run on the way.
Key aspects of this cheat sheet + some anecdotes
What goes up, must come down!
- That's the same with crypto. I remember in December feeling that Euphoria of going increasing my original investment by over 7000%, feeling I could be a millionaire in a couple of weeks at the age of 18 and how I felt I was invincible.
- Fast forward to January, there was an excuse for all the dips, and everyone had reasons to be optimistic and this hive mind of we're just cooling off until the next rally became set in stone for many like myself, but the markets kept falling.
- Chinese New Years passed and still no bull run... Regulation news came out bullish but still bearish market... Soon people started to panic and sell, which caused a dominoes effect causing more to panic and sell before finally we started to stablise a bit around $300 billion. Then more and more dips happened until we're at where we're at now.
What goes down, must come up!
- This is also very important. You can see from the simplified market cycle that right now we are in the trough, also the point of maximum financial opportunity. Crypto has followed this sort of cycle since the very start, with massive bull runs and massive bear runs and right now we're in a bear run. This is where opportunities come from and how millionaires are made, this is where we should be watching the markets and accumulating, positioning ourselves for the next bull run. I'm still very optimistic about the future of crypto!
I'm NOT saying to buy in now!!
- Despite the above, I'm not saying now is the best time to buy in. We're in a bearish market right now but we know it'll be bullish again... however we don't know where the turning point is! Is it tomorrow? Is it next year? No one really knows (unless you're a market manipulator).
- All we can really do is prepare for more dips by selling small portions when the price rises and buying back when it does fall so accumulate more or just hodling and making money in real life so we can buy the dips, but remembering to NEVER invest more than you can afford to lose!!
I think we are near the end of the current cycle or almost in the beginning of a new cycle. I think the next cycle will be huge with the institutional money coming in. To go through the next cycle as efficient as possible and to be way more relaxed during the next crash I created the Diversification Protocol.
Nice, I'll check out your protocol later tonight! I think institution money coming in will be soon but they're probably looking for a green light to come in. With the volatility and uncertainty behind crypto right now, it might be a while before they join us.
The timeless cycle of nature... things die and decompose, so new things can grow and thrive. And when these die a new life is born on their grave!
I say we wait for the bottom, cause cryptos including steem are gonna go down some more... and then we buy. And if you don't know what to do, listen to Tony Montana :)
That's a great analogy! Crypto will thrive and I agree cryptos will likely take a bit more of a hit, but I think the bottom is approaching soon... I'll be buying more if bitcoin drops under 6k!
I'll be buying more steem with whatever fiat I have!
I always buy High and sell low
AHAHA story of my life...
This happened to me with BCH a while back, i held for like 3 weeks (quite a long time for me) and it just kept dropping, I sold and it more than doubled in a day :c
Yeah... I stopped selling anything since this always happens to me.... then what happens for the 1st time ever ? everything drops by almost 80%. .... just can’t win
Yeah... I used to sell and then it would rise heaps, so I stopped... now it just falls LOL
At least all my $2700 Steem was Free from blogging.... so in my view Steem is the very best.
I love Steem as well! Although my Steem isn't all from blogging and some from my own investment, I know I'm making more Steem with the Steem I have!
If you're like me and sometimes have your vote power over 100%, I suggest you check out Minnowbooster (referral link) if you haven't already. I set it so that whenever my voting power is above 98%, I sell my votes so I know my vote power isn't going to waste plus I have enough vote power to use myself!
If you are interested: look at the graph of bitcoin in 2014. There was also a bubble crack during this period and it is very similar to the one now.
Great observation! This is exactly what it looks like now... only problem is the bearish market lasted like 3 years haha, hopefully this time we can start recovering before 2021!
ahah! Yes of course it is just a fun fact, I think. I hope so 😋.
I would just precised that we cannot make some previsions only based on a similar graph. There is a lots of parameters to take in account: the number of speculators and financial banking institutes that enter in the market, the crack is more important than in 2014, causes are different...
But I think the confidence in cryptocurrencies will rise when the first concret applications will appear in the real life !
That's true, this time round the market is entirely different, with adoption closer and real life use cases for the blockchain, cryptos are definitely moving in the right direction :)
Market psychology is key for any trader success.... Master the psychology and the money is yours for keep. Very informative mate!
Yes, I agree. The markets are driven by humans (obviously) and we're driven by emotion so mastering the psychology of traders will go far in this space, and cheers!
Where are we? really where are we going ? When will it grow up again. I am waiting for that time.
As am I! I guess no one really knows for sure where we are, but I am confident that we will see ATHs again, be it in a month, a year, a decade? Who knows...
Good day will come back again , I hope .
We recommended this post here and here.
Hello, I am a visitor from the future! Do not buy in yet! You are only in the Anxiety/Denial phase and there is much more falling in store! Thank you!
if you look at gold or silver charts since 2011 they look the same as bitcoin now
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