Assets tend to go through a somewhat predictable cycle known as a market cycle, which attempts to explain how the human psychology tends to work throughout the price cycle of an asset.
It explains the different phases of a market cycle and the mental state that often accompanies it.
You have probably seen it before, but it not, it looks something like this:
You would be shocked to see how accurate this chart is and how many asset price charts look exactly like this on a number of different time frames.
Personally I think bitcoin is in the disbelief stage. Climbing that wall of worry where some people aren't even sure if the bear market is completely over yet.
Others also refer to this part of the rally has the stealth part of the rally, where the long term believers are well aware of what is going on but much of the outside world hasn't really caught on just yet.
I think we are somewhere around here presently:
If this is true it would mean we haven't haven't even gotten to the first major bear trap yet.
The time when the market corrects by 30% and the rest of the world starts gloating that they were right about bitcoin.
We've seen it happen a few times already and the bears end up getting slaughtered right before the parabolic move rips their face off.
My guess is this bear trap happens after we break $20k.
Probably shoot up to $30k or so and then see a very steep pullback, possibly one that takes us all the way back to $20k.
Sounds funny saying "all the way back to $20k" like it's a bad thing or something...
Anyways, that's how I see it, what part of the cycle do you think we are in?
Stay informed my friends.
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