{"id":410352,"date":"2020-01-09T17:00:09","date_gmt":"2020-01-09T17:00:09","guid":{"rendered":"https:\/\/ktsl888.com\/?p=410352"},"modified":"2020-01-09T17:00:15","modified_gmt":"2020-01-09T17:00:15","slug":"psychology-of-a-market-cycle-are-bitcoin-investors-in-denial","status":"publish","type":"post","link":"https:\/\/ktsl888.com\/news\/psychology-of-a-market-cycle-are-bitcoin-investors-in-denial\/","title":{"rendered":"Psychology of a Market Cycle: Are Bitcoin Investors In Denial?"},"content":{"rendered":"

There exists a schematic depicting the psychology driving the different stages of a market cycle, and it often gets shared in response to the current sentiment in Bitcoin<\/a> markets.<\/p>\n

According to the \u201cWall Street Cheat Sheet<\/a>,\u201d investors in the first-ever cryptocurrency could be in denial and will be caught off guard if Bitcoin falls significantly lower from here.<\/p>\n

Where Is Bitcoin In The Current Market Cycle, According to Famous Cheat Sheet<\/h2>\n

All financial markets are cyclical, and it\u2019s no different for Bitcoin<\/a> and other crypto assets. After periods of extreme or sustained growth, often comes a retracement of a similar magnitude.<\/p>\n

This is exactly what happened after the crypto hype bubble of 2017 popped, causing the irrational exuberance to turn into denial, panic, and later anger and despair. These emotions cause investors to capitulate and sell assets – often at a loss – shortly before the assets begin to rebound and the market cycle restarts once again.<\/p>\n

Related Reading | Elliott Wave Theory Suggests Bitcoin May Be Due For Biggest Correction Yet<\/a>
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With Bitcoin<\/a>, capitulation occurred in November 2018 when support at $6,000 broke down and the leading crypto asset by market cap fell 50% to $3,000 at its final low. Despair permeated the crypto industry, and companies began reducing headcount to prevent bankruptcy.<\/p>\n

But come April 2019, Bitcoin began to grow once again, convincing many crypto investors the cycle was starting once again, and the cryptocurrency would be moving slowly toward a new all-time high.<\/p>\n

Except Bitcoin<\/a> was rejected at $14,000 – before it could set a new high \u2013 and is already in a downtrend once again.<\/p>\n

But because Bitcoin has already \u201cbottomed,\u201d investors are confused about where the leading cryptocurrency by market cap is in the current market cycle.<\/p>\n

Many argue that we\u2019re still in the disbelief phase, and bearish investors are incorrect about their sentiment. Others say that Bitcoin investors are in a state of denial, and after the next drop, it would send sentiment into the depths of panic, anger, and despair before the cycle starts up once again.<\/p>\n

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Wonder how many of the people who laughed at my echo bubble chart in August are still laughing… https:\/\/t.co\/4crpmF9Dq8<\/a> pic.twitter.com\/cSXIJsfwY4<\/a><\/p>\n

— A Voice of Reason in a Sea of Insanity (@sometrader78) January 9, 2020<\/a><\/p><\/blockquote>\n