Blockchain and Cryptocurrency Basic - Emotional Phases of The Market Cycle on A Cryptocurrency Chart
Looking at the ETH/USDT chart, we can see the different emotional phases as the market is in an downtrend. The first phase was the complacency where the investor is not too bothered and is waiting for a correction back upwards. The next phase is the anxiety where the investor is beginning to get worried due to taking advise from other investors or friends. The price didn’t go as he/she expected. The next phase is the denial where the investor is consoling himself/herself that the bull market will return and the price will rise again. The next phase is the Panic which is where FUD sets in, the investor can’t take it anymore and is afraid of losing everything. The trader begins to sell because other are also selling and the price continues to crash down. The next phase is the depression phase which is where the investor starts regretting and feeling sad due to the lost and start blaming himself for investing in the first place.
Looking at the BNB/USDT chart, we can see the different emotional phases as the market is in a uptrend. The first phase was the hope phase where the investor is hoping for the price to recover. The next phase is the optimism where the investor is optimistic about the potential upward movement. The next phase is the belief where the investor is fully invested into BNB coin. The next phase is the Thrill phase which is where FOMO sets in, the investor jumps in and begins to buy more and also shill it to others to buy as well so as to capitalize on the price increasing. The final phase is the euphoria phase which is where the investor praises himself/herself on the investment decision.
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The market cycle is greatly affected by changing human emotions, which controls people's actions on when to buy and sell. Thanks for posting @chimzycash