BTC / USDT - Technical Analysis & Market Psychology!

The technical analysis is a simple method of market analysis,
but when we talk about BTC (especially BTC), we must look beyond standart trendlines, indicators and other instruments ot technical analysis!


What the TA show us?

In the last months we have strong downtrend and by the TA rules, we have to looking for short positions!
If we focus around these days and last movements, we see some correction by form of a consolidation in H1 & H4 charts.
The technical analysis tells us, that if the consolidation support line is broken, we have to wait test of the same line and signal to entry.
This is a rule, we have to follow ... (Always is better to wait test of any level... it is lower risky)


But in the trading "game", there is something more interesting - Market Psychology!

What exactly is?
This is the concept, that the market movements influenced by the emotional states of its participants.
In other words, traders moves the prices by their own emotions.
Emotions are thought to be at the heart of market movements.

When there is a uptrend in the market (bullish market),
it is most likely caused by the positive attitudes of the traders.
Then we see market optimism (that's the Lambo thoughts) rise in the price of an asset,
with no obvious reason for it. The reasons are belief, greed, optimism and so on.

Positive trader attitudes lead to an increase in demand,
and when demand increases in a short period of time,
the fastest way to respond to increased demand is to increase the price.

The opposite situation is observed in the negative market sentiment.
Then the fear of emotions prevails, which leads to a decrease in demand and an increase in supply.
And when there is no one to buy, the fastest way to drive purchases is to reduce the cost!


A great example of market psychology is Bitcoin up and down trend!

Let's turn back in 2017, just for several months BTC makes an increase
of 20 times or more than 2000 %. From $1 000 / BTC to $20 000 / BTC, where is its ATH.
During these days market sentiment was very, very, very positive,
( money, more money, Lambo, even two Lambos! Yep, you remember that period ) :)) !
Many new "investors" put their money in the Cryptomarket, ofcourse around $15 - $18 000 / BTC!
Greed, FOMO and optimism were the reasons of all bull market!
There was no use of BTC, but its price risen hourly!

In thoughts and dreams we reached the beginning of 2018! :)
In a quick way, Lambo gone away!
The market sentiment become negative, Fear and Panic overwhelmed everyone,
especially new "investors". Some of them even taken a cash loans,
to invest them in the market. And what exactly they did ... bought the top ans sell the bottom!


Conclusion!

Don't use money which you can't afford to lose!;
Don't put everything in at once!;
Don't leave the market at once!;
And last, I think it is great time to buy some crypto for long term!


Thank you for your time, I tried to discribe the role of Psychology and market sentiment. And I hope everyone consider very carefully next move / position.
If I helped, it would make me very happy!

If you like what I think about Cryptomarket, please Like, Subscribe and leave your comments!
Thank you, once again!