"Don't be a chicken". Have you ever wondered about the origins of this saying? It's quite direct: chickens are notoriously easy to scare, and their fearful expressions are unmistakable. And right now, we can see plenty of chickens in the crypto market. Yes, indeed...
On Friday, we experienced a significant sell-off in crypto, triggered by the German government's Bitcoin sale and some Mt.Gox FUD. Just look at CryptoSlate now; they're reporting that the German government actually bought 700 BTC back. At least, that's what they're saying...
However, the dump of around 2000 BTC by the German government wouldn't have caused such a price plunge, taking BTC from $58,000 to $54,000. But since everything is on-chain and decentralized, blockchain technology is designed to provide transparency, and the plebs got panicked and sold along with the German government.
Great job, guys! Now BTC has nearly recovered all the ground it lost on Friday, and we'll likely see BTC rise above $60,000 next week. If not, then we need more consolidation before the uptrend resumes, but one thing's for sure: we're in a bull market, no doubt about it. Although the crypto market seems to have decoupled from traditional markets, we're still in a bull market.
Throughout Bitcoin's history, we've never had a bull market end just two months after the halving in disbelief instead of euphoria. Some of us mistakenly thought this cycle would be shorter due to Bitcoin spot ETFs, but the four-year cycles are probably still intact.
I'm not skilled at charting, although I should probably learn some TA, but I enjoy watching the psychology of the masses closely. Right now, the psychology of the masses is in panic mode, largely because the market isn't fulfilling their prophecies and expectations.
But if you pay close attention, you'll notice that the moment you feel like hitting the sell button and exiting the market is the moment of maximum opportunity. Conversely, when you feel confident about your portfolio and believe there's no limit to its growth, it's probably time to lock in some profits.
It would be so easy if we could reverse our minds, buying the dip instead of being the dip, and bragging to our friends about our portfolios to taking measures and securing some profits that would enable us to make it through the next bear market and possibly reinvest.
If you view opportunities from every angle, we're in a continuous bull market. This means that when the market seems to have found a bottom, it's time to accumulate, and when everyone's confident about the imminent turnaround, it's time to exit and start shorting. This way, we can make money both on the way up and the way down.
I know it's easier said than done... But what do we have to lose, unless we go and trade like degenerates, screwing up big money we've earned the hard way... Just my two cents on this torrid Sunday afternoon.
Thanks for your attention,
Adrian
