Topic: Bitcoin Investor Psychology (Read 717 times)

This is a psychological moment, because when a person sees that the price of bitcoin is falling, he expects it to fall further and is afraid to buy. And when growth begins, he buys in a hurry so as not to miss the wave of growth. All that is true is cycles that will always repeat. Even when the big growth starts, the media starts warming up people and they are ready to buy at a high price in anticipation of more growth, much more growth.

In the recent few days we have seen some good momentum in bitcoins prices. Many people who were waiting for more cheap prices are now worried about this pump. Soon when bitcoins crosses 50k , they will feel missed out and started to buy in fomo. This cycle always repeat.

Generally, the psychology behind it is the fear of Uncertainty, literally most of investors wants to start seeing their portfolios grow in value or have gains almost immediately after making investment, so they need certainly. that's why most of them are skird to buy Bitcoin when the market is red to avoid loses forgetting that risk is also part of any investment, except the ones that have had their trained to buy when market is on red and sell when it's on green.

 The value of Bitcoin has increased exponentially and still is increasing. But when it comes to owning or trading, traders panic if the prices drop and sell them.

Its one of the reasons why most of the investors are losing because they tend to buy and sell without timing. And this happens mostly on the investors that do enter the market without good orientation, and they only believe that bitcoin price will always move upward so if they invest in a high price, they will still make profits from it. Unfortunately, bitcoin is not like that. It has always its price volatility so expect that price fluctuates from time to time.

People are shortsighted, it is as simple as that, buying bitcoin for a price below its average is always a good decision, however in order to do it you will need to overcome the fear of buying bitcoin and that it keeps going down, and very few people can do that, however when the price is going up continuously people think that it will keep going up forever, or at least for a long time so they buy when the price is too high, so it should not be surprising why so many people lose their money in the markets when they are doing things backwards while wasting their money in the process.

I guess that's always the mentality of most of the people to see its value when there's a high demand on it. In case of bitcoin, people see its a good opportunity to buy if the price is already rising because they believe that the day after they bought bitcoin, the price will rise up even more. Not thinking that volatility could suddenly enter and pull the price down. That's when they start regretting that its good to buy at a lower price and sell them at a higher value. In most cases, people misinterpret this so they always end up losing and regretting.

Exactly my sentiment. And I would even go as far as to claim that this is the same sentiment that everyone in the Bitcoin investment world develops after their initial trial and error phase where they lose all their money from panicking, selling during dumps and buying when their fomo kicks in. Expensive lessons to be sure, but I feel like its the only way some people learn, which is to say, through pain.

What can you do, everyone is only human.

You are right. That is the only reason that the investors that actually understand the market keep buying regardless of the price. People Have invested in Bitcoin back at the last ATH and those that didn't sell, of cause, made profits after the long Bear market and this has always been the case if you look at the Bitcoin chat for years now Like the saying goes, ‘The best time to invest in bitcoin was yesterday,

I can attest with this kind of scenario. I have seen so many times already different kinds of people whenever there's pump and dump happening and mostly, these people are just everywhere. Whenever bearish market enters and coins suddenly drop price position, people are fearful, they tend to sell right away. Meanwhile, when price position is low, most people still try to enter despite the price which doesn't totally makes sense. I believe this is mainly because of three main factors which are greed, loss of hope, and unchecked and lack of information.

Greed. Most people whenever they see high price value, they would want it too. I mean, who wouldn't want gains right? However, some people do it the wrong way. Instead of buying in low price position, they buy in high position. Most people are encouraged and enticed to take the risk because of the hype. And oftentimes, they were left behind in the upper position because most people, particularly the experts already took profit resulting to gradual change in value specifically decreasing manner. Some people are just too greedy to generate money and in the end, they end up losing instead of profiting.

Loss of hope. Some people are not really emotionally strong to risk whenever they see unpleasant scenarios such as seeing a downtrend in graph. They tend to be fearful and doubtful whenever dips happen. Some thinks that it may not be able to recover and they would just end up losing money if they would risk it. Which is also justifiable since not every dip is worth it to buy. But sometimes, you just really gotta take the leap of faith and trust in the coin as long as you know they have a nice whitepaper and projects in the future. I have heard so many confessions of regrets because they didn't buy in low position. Turns out, the coin they think will continuously dump suddenly skyrockets after several years. Just like what happened with bitcoin.

Unchecked and lack of information. This is one of the factors too and actually it plays a great role. This usually is the reason behind the greed and fear of investors and traders. Oftentimes, they are misinformed about something and didn't bother to have a fact-checking before delving into it. And sometimes, they just don't bother to search and equip themselves with knowledge.

Being so fearful won't get you nowhere the same way with being so greedy. So you must really know when to invest and when not to. And being so complacent to the point that you no longer check and feed yourself necessary knowledge about the things you do makes a conflict too. Let us always be a responsible investor. Let's do our part such as doing in depth research to avoid wrong timings and regrets.

To make profit all the time in their investment. Making a profit all the time is not an easy task to investors because Market is unpredictable. Now that the price of bitcoin is still not stable for investors to make a good profit from their investment and it makes them to feel bad in their investment.
Investors thinking right now, is for exchange market to improve higher for them to achieve passive profit from their investment.

What they really want is to increase their profit in a rush way when they see the price is rapidly increasing at the moment, they also flock to invest in that situation not giving any second thought to what is about to happen when the early investors also start to sell their bitcoins one after another. To get a decent amount of income is not really easy because you need a mindset that can persevere the malicious event that always hunting the cryptomarket and that's the volatility. they don't believe in investing early because they don't see the fast result rather they prefered to join the market in rush buying.

They'll always fall in line when bitcoin is soaring and topping. But when it's dropping, they're thinking about the end and death of bitcoin and how they'll get their ROI in no time.

Newbies and not, they'll have that mindset as always. The thinking they got is it's okay to ride when it's pumping at least they know that it's not yet going down. So while it's active going to the top, that's when they'll ride.

People may have many reasons why they fail to meet up with the opportunity whenever bitcoin price falls low. The following reasons maybe because of fear of buying  bitcoin when the price seems low because of the news they get about bitcoin,  how people bring fake news as bitcoin is coming down it may likely crash . News like this draws new investors attentions back.
Also, for some when the price of bitcoin falls low they not be ready for it because of lack of funds to purchase bitcoin and end up missing the opportunity.

the queue for $69k was very small. only a few people were buying thats why it topped out. no one else left to buy
if the demand was higher at $69k then it is at $40k then the price would not have stalled at $69k

what you find is at the moment kazahkstan. just set up mining and its costing them $35k. they need to pay bills for the start up costs so they are heavily in sell mode

america are at $43k so they are in buy mode
kazahkstan can make profit while price is $40k but they dont want to have american mining again if the price goes over $44k. because then the hashrate competition kicks in which would increase kazahkstans costs and reduce its reward. so they really want to sell coin right now
keeping the price below $42k safety zone, but also keep it above $35k so they can profit.

while in this "safezone" of $35k-$42k kazahkstan can pay off its build costs and expand by 20%..
if the price shifts to $44k
american mining will reduce reward shares by more then 20% and americans would stop buying and start selling. leading to demand for kazahkstan mined coins to dip.

kazahstan doesnt like this so they are happy keeping the pressure on to keep bitcoin between $35k-$42k

it is depend on your views and respect to bitcoin , if you only treat this as purely profiteering then sorry to say this is not for you.
but if you know that this is not just a thing for profit but also for usage , this is a currency and must circulate , not just a place where you can buy and sell.
actually we are just talking about our views but we are not anticipating what is their real intention why acting like this.

That's because they missed out on the hype train and they think that there's still a possibility that the pump will go much higher so they still get in despite being a delusional thing to do. In my opinion, we can use that to our advantage knowing how the mind of the masses works, you can make lots of money out of it.

Just to read the predictions that it will go down below 30k, any new user will be in hesitant mode to buy bitcoin at that point. So for me, such reaction is just normal. We are just humans subject to this kind of emotion. We are losing confidence when the market is in red position. Only few people have their strong support even if the market is going down, those are people who already saw the up and down motion of the market countless times and of course, they are strong believer of bitcoin. Their decision usually pays off as we see that bitcoin bounces again and again after the dump.

Here it is detailed what a conglomerate of people with almost no knowledge about the market represents, who get carried away by what they say in the news, and $35k represents the opportunity, buying in a dip will always be the best option to do, what happens is that very few have a high financial culture to accept that this can happen in that way, there the Fomo is detailed, the amount of manipulation that exists in the media, and that there are very few people who actually think and seek the money.

I think this is always happening.
Let's see right now, the price of Bitcoin start rising up. I am sure enough that many people are waiting to buy Bitcoin again because knowing that the price is rising up. Why they didn't buy when the price was under $35k some days ago? Because it is about afraid situation triggered that made them not sure whether the price will rise or be bearish. Moreover there are many FUD that say about the bearish market is already coming.
And this will be happening again, people are more willing to buy Bitcoin when the price is at high 

At times when I see things in this form I come to wonder if the term always and ever being used in the crypto community is being listened to, obeyed or observed. It is a clear thing that when the price of commodities or stocks in the market faces a downtrend price drop, there should be more buyers and investors, so as to make profits when the market recovers from it's deep, and this profits are of more effect in the investment in Bitcoin when it comes to crypto currencies.
The cause of FOMO is one thing that has made people make some reckless mistake, and also being feed with wrong information at the point of investment. It's very strange to see things like this.

There are many factors that cause that. It is not that the investors do it willingly.
One of the factors is that people used to invest in what they think is growing. People that bought at $69k was expecting btc to hit $100k but I failed.
People are also afraid to buy now because they think that bitcoin will go down the more. So that is why they buy as soon as the bull run starts so that they will run along side. But the wise ones are the ones that runs before the bull run.

it is a pattern of psychological trapping by the user's personality on values. most of them are beginners who used to underestimate bitcoin until when the price went up they were motivated to profit from the high value, that's why I say this is a trap for themselves because the desire to improve their finances ends in a trap that they set themselves.
it's just about bad management because of greed without analyzing.

That is true, Analysis is a very important aspect of trading. Knowledge and understanding about the market makes it easy to make firm decisions. While trading cryptos there might be a situation when a trader might need to hold the position but due to the lack of knowledge among novices they tend to sell instead of holding the position.
Without any analysis it would be pure gambling.

This may keep going on until right now. When the market is in dip, there is some fear and also worries that the price of Bitcoin may not be able to rise up again. And once the price rises up, they may be triggered to buy again, but too late. That is exactly the psychology of Bitcoin investors, but not the real investor. They may be the followers or the people who are only in the situation.

This always makes sense where most people really only want fresh money as soon as possible but they only focus on the FOMO and also FUD that they may be facing. So far, we can find this kind of person and they may not be changing

They dont want to deal on something which havent been thought or been put up into their books thats why they wont really be having that open mindedness when it comes to possible innovations that might
existing ahead which this would be the great example and you shouldnt really be that be shocked on that situation yet its been the reality on where people do really hesitate on dealing up with
something which they arent aware nor now knowledgeable of when it comes to its existence but for sure sooner or later they would really be doing these things
specially if adoption increases up overtime.

When they see the price increase rapidly, they FOMO. They think that the price will increase further more and they will be able to make a some quick profit from it. So they end up buying at a high price due to greed. They don't buy when the price is low due to FUD. When they see the price tanking down, they fear that the price will go even further down, hence stopping them from investing more in bitcoin. Most of them are the newbies who has no plan on holding the coins for long term.

Well obviously everyone involving themselves to this market surely knows already about the basics of demand and supply and it's not just all about that "unstable" price that most people throw out without any possible reasoning behind it.
Quite curious why some of my friends that specializes in economics doesn't want to get involved in crypto though, lol.

Every investors claimed he or she is in the right direction to sell bitcoin or to buy bitcoin to make profit. Now that the price of bitcoin has dropped to $35k which is an opportunity for investors to invest more on their investment to wait for bitcoin price to hit $80k before putting them for sale to make a good income.
Now that the price of bitcoin has decreased in the exchange market, many investors are afraid to sell their coins because the profit is not encourable for investors to smile for their labour. Many that have believe on bitcoin will prefer to hold till the price increase before they can sell to make a huge amount of money from their investment.

Everything that does involve analysis and you are the ones who hadnt able to apply those factors then you would surely be doing gambling because you wouldnt know on what you should gonna do next.
It is really just basic that you would need to analyze and make out some research first before you do make out actions and not on making actions without even thinking on whats happening.
For some point there are situations which no matter how hard we do make out some research but still ending up on getting blanked then those are unavoidable circumstances but with due
experience and knowledge then you would able to bare up the situation.

You are right, in fact, whenever a person enters trading or investing, they must be clear about many fundamentals at an economic level, if a person enters the market without knowing anything about financial education, what first comes to mind will be, or maybe they will start playing or trying to guess what can happen, and that would already be gambling, however if a person buys and their stock or currency goes up, they win but they cut the profit (most of the time it happens) and when they lose they have always the hope of not going out thinking that they will recover, in the case of BTC it is something else, because there will always be the Hodl mode that is safe, but that for a novice does not understand very well.

They need to change their minds not to buy bitcoin because it is booming, but they should bitcoin when they think that bitcoin can benefit them in the future and help them have a new type of investment that can provide them with profit. If they do not use this moment to buy back bitcoin, they can regret it because they have already seen what happened before. Bitcoin price was at $33k-$34k but then, the price can jump higher to $37k-$38k so if they bought bitcoin, they are making a big profit from that. I think this situation can repeat as the price is back to the lower price and the chance to increase.

most people probably buy bitcoin because it is booming. but they don't know how to invest properly and correctly in bitcoin to get big profit.

as we know bitcoin there are coins that already have big names. I think people who have a business spirit must be competing to buy coins. and they will sell it during the bull run cycle.

if you can work out a value window of what the last highs and lows are of the last X months. either just looking at the price chart plots. or being smarter and also considering the mining cost numbers.
example here a couple pages back
and say the value window is $30k to $70k range
then you take that amount difference between. and decide where the price sits:


$30k-$40k 'so cheap id sell my wife for some coin'-> cheap
$40k-$50k cheap->average
$50k-$60k average->premium
$60k-$70k premium->'so expensive id rather buy a wife'

try not to buy coin when having a wife comes with more benefits

Profitability would really be depending on someones action and if he does have that kind of mindset and beliefs then for sure he would be fucked up by the market thats why you should really learnt up on things that you should gonna learn because it would be the best tool for you to sustain this market even though it would be hard but doesnt mean that it cant be done thats why results will really be varying with those factors.Dont take things too easily and confidently because these are the common factors on why people do really mess up.

In theory it is very easy to say buy bitcoin when the price is falling. However, when we enter the psychological market, it will be more and more toyed with, capital management also needs to be considered. Sometimes traders have bought at a low price according to them, but when the market crashes like now they have no reserves to buy again. Buying bitcoin when the price is falling is everyone's desire, but where the price is right to buy will vary.

there is an explanation for that. observe what happens to anyone new to day trading, the new person always buys at the top because he thinks the price will continue to rise and he never buys on the fall because he thinks the price will continue to fall a lot and he would be in a lot of losses, but we are in a market and there are no feelings here, if someone is losing that is the person's responsibility and if someone is making a profit that is the person's responsibility

Maybe those people have learned their lesson. They quit btc for good so that they wont loose anymore or maybe they are not buying when price is dumped but they are waiting again for the price to pumped and then they buy it.

We think this is strange because we think the best way to build wealth is buy buying low selling high but we did not know that it is also a valid strategy and there are people that are using it where they buy high and then they also sell high. I think that it does not really matter if which side we chose but what matters the most is how do we handle our investments. It is important to not panic and sell but lets us stick to out plans as possible.

The most competent investor psychology is to buy bitcoin while it has fallen in price. Further, we will live in the era of cryptocurrencies recognized by all states and its price will be completely different - much more than now. This means that this is a person who is not in a hurry and at the same time understands how to properly invest his savings.

No, it's not a strange thing and this is the real world and actual thing. People love to see bitcoin at high prices and won't have any second thought of investing while it's soaring.
But when it starts to correct, everyone is starting to find a way out of it and won't think about selling at losses. Instead of buying it cheaper, they would feel bad and helpless just by looking at the price.

The price of Bitcoin would have stood at 300k if the period had been like 2021. But by 2022, the price of all coins, including Bitcoin, has been heavily dumped. Although the price of all coins in the cryptocurrency is declining now, there is no current review of what the future holds.

Those who wanted to buy at the highest price thought it would exceed one hundred thousand dollars

This isn't only the bitcoin investor psychology, this is an average investor technology, an Investor who just wants to earn money quite quickly, therefore, will be ready to buy more and more at the top, but whenever you tell him to buy at the bottom, he will tell you to wait for some time as the price may go even lower. You will find such people in all types of markets, even stock markets, forex markets, and even commodity markets. We have even indexes created based on these sentiments of the investors, for example, the crypto fear and greed index, it's one of the indexes made upon the mentality of the investors.

That’s one of the biggest mistakes that a lot of people make. They want to get in and start investing when the market is increasing in value, because they feel that it would keep going up, and that’s why a lot of people would make the mistake of buying when the market is at its peak.

I have seen a lot of people, including my friends that would invest in bitcoin when it is at its peak, and they would lose their money as the market dips. That’s something I try to avoid a lot. I make use of dollar cost averaging at a time when the market is at its lowest ; I invest little amount that I can afford to hold till the bullish trend starts. You wouldn’t feel any much pressure when you’re using dollar cost averaging, it would seem like making savings.

This will be the the case forever as every dip reminds them about the year 2018 and they believe it's a repeat of 2018 for every dump but this time around it's different I see more people buying Bitcoin now since it has crossed $38k after dropping down and I think users have learnt the lesson as they wait for the price to hit bottom and once it starts bouncing back they make entry which was not the case earlier. I am happy atleast we are learning from previous mistakes and just wish this is not one more bull trap.

It is a common mistake already and it's been happening even outside crypto just like others mentioned. Retail, stock market or whatever you call it. It's hard to risk money these days, just considering some cost of living in some countries. There are more factors aside from what I mentioned. Altcoin or Bitcoin, the same thing applies. Good thing Bitcoin never failed us though, unlike 99% of shitcoins out there, lol.

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Nice number by the way.

This strange bitcoin investor psychology is found both in the newbie investors but also among the old crypto investors. Many people don't learn from their mistakes and keep repeating the habit of buying at high and selling at low. That's why we see only a few people are able to make good money from this volatile market while most of the traders and investors are found complaining that they are in a loss.

It's a great picture from op. Of course, not everyone's like it. Some buy a bit at any price, some buy the dip. But investments and interest in Bitcoin as a form of investment clearly rise when it's high up and fall when the price is down and there's actually a good opportunity to invest. This probably means that most investors don't take Bitcoin seriously. They don't believe that it's valuable, so they rely on the price to see if there are enough people who deem it valuable and whether it's thus worthy as an investment. If they believed in Bitcoin, they wouldn't pull out the funds every time it's down. And I thought Bitcoin recovering after 2018's bear market made it obvious that it always recovers and goes higher.

I think there is a concern here, if they don't buy it, they are afraid they will be left behind. So they ventured to buy at a time when the bitcoin price was relatively high. What I want to underline here is "forcing to be brave" so they forget to analyze to what point btc will skyrocket from the price they buy. That's why many complain.
My advice if we hesitate to buy, then it is better to wait until we are absolutely sure.

I don't know what to say, but this is really happening in the market. I don't think that's a strange thing, but they are people who get carried away. I don't know what they were thinking, but it was a situation that left me speechless. Indeed we can't blame them, because they must have their own reasons when buying bitcoins at high prices.

We can't blame them for any reason, and we have to appreciate it because it's good for them to want to get involved or buy bitcoin even though in the end they feel disappointed because the price reversed.
they are new people who don't have basic knowledge and also don't understand bitcoin who only have hope the price will keep going up when they buy it and when the price goes down by half maybe afraid the price will keep going down, so Holding it firmly is their best option and hope the price going up, and what happens will be a lesson for them and will get to know bitcoin better overall. and with it will make bitcoin continue to grow and become popular.

It is not the same as the sale in shopping malls, and I agree that they are buying at higher prices because of a lack of knowledge on the part of the buyers. Usually, the issue is that people are afraid to buy on red days because they believe the stock will fall more; however, on green days, they believe it is as simple as rocket science and the stock will rise more rapidly. The difficulty comes from rushing into an investment without fully understanding what you are getting yourself into.

The difference between FOMO and panic selling/buying the dip has already been explained multiple times.
I guess that the buyers will have to wait for a few weeks,so they could be sure that 32-35K USD is the dip.
Maybe then they will start buying.
I have a good feeling about April/May/June.Maybe the Bitcoin price might start recovering during the spring.
However,I might be wrong and the price won't recover back to 50-60K during the entire 2022(which is perfectly fine).
Most true Bitcoin investors and HODLers are ready to wait a year or two for another Bitcoin ATH.

We will always see such scenes and now it has become preety common as at the time of price dips there is huge rush for people selling their coins and on the opposite side whenever the price is rising people tend to invest more to gain profits as they believe now their investments will be safe which is totally wrong approach in bitcoin.The wise man always buy at the dips which will give him more profits in the long run.Panic sell is the worst combo mixed with greed of people and they start selling without any knowledge.So leave them at their own end.

It's funny but I have some friends who are as typical when it comes to "crowd mentality" as it gets. One of them always messages me when bitcoin goes up a lot and asks if this is the right time to buy, but when it goes down he never wants to talk about it and says that this time it will be over for bitcoin. The other one always waits until the last moment. He needs a few months to finally produce enough confidence to buy, but then it's usually late. When it keeps falling he does the same. Fear slowly builds up for months and months and finally when he's down 70% he sells.

They both witnessed the 2017 and 2021 bull markets and never made serious money.

I also know another "typical guy" who keeps telling me that bitcoin is too expensive for him and always invests in the most shitty altcoins out there. He's like a compass for what not to touch.

It's interesting that people always go after the easiest and the most obvious pattern: I put 1 dollar in the slot machine and got 2, therefore if I put 100 I will get 200. This is the shit most people believe in and it works both ways: I bought Bitcoin and it went down, therefore if I buy again it will go down again and I lose money, so I better not.

This picture really shows how people are more interested in something that is on hype or in their top price, with very high happening news. But, they are too afraid of something that is being dropped, being at the bottom. Although actually, those are the similar thing, the same value, and also the same investment. But, they are too afraid of what is in their mind, with more FUD.
I cannot say that it is all investors, but most of them are the new investors, who maybe invest in Bitcoin because of hype or only follow the other success.

That's right, most of them are like this, late to buy Bitcoin at such a low price. I think most people just follow things that are booming, therefore the price goes up when they decide to invest in it and take it at a relatively high price. It's true that we have to change our mindset where when the price drops it's the right time to buy, moreover we know the prospect of Bitcoin itself is indeed good for the future so buying it at a low price is an advantage. Bitcoin prices will always go up and down in the market and as investors or traders, we must be able to deal with it well.

Sometimes people don't realize that their greed leads them to wrong decisions. Some people are indeed more enthusiastic about buying Bitcoin
when the price of Bitcoin goes up, because they think the price of Bitcoin will continue to go higher. Greed makes us not think realistically, even though
the price of Bitcoin if it has gone up high, the next one will decrease. So in the end many people buy Bitcoin at the peak price, when they should buy
Bitcoin when the price drops. This is the importance of controlling emotions and also learning more about the crypto world, so that we can make
the right decisions. Don't be influenced by other people's decisions, we must be able to believe in our own decisions. Sometimes our decisions are right,
but because many people make wrong decisions, we become affected. As an example of what is happening right now, where many people panic
and sell the Bitcoin they have, because the price of Bitcoin continues to fall. We must have the courage to make decisions that we think are right,
we know that the right decision is to buy Bitcoin when the price is low and sell Bitcoin when the price is high. Never be afraid that the decisions
we make are different from most people, as long as we believe the decisions we choose are the right ones.

yes the first 6-12 months of newbie experience is that they "heard from a friend" to buy in and 10x their money quick
this is why us long term bitcoiners need to ensure these "get rich quick" adverts are not promoted and instead offer advice "buy the dip, not the hype"

I believe such behavior can be seen in most newcomers in this market. Because if you are a long time crypto user, you already know when to buy and sell your btc. Noncrypto users will notice the btc market when it is rising, but once it is declining, a lot of people are in panic mode or don't know what to do with the market. And for those who are waiting for btc to go down, this is a very good opportunity to accumulate. If you are strong believer, you will know that this is one of the good times to collect. But the simple photo from the OP is actually true and is happening.

Maybe you should be dishing out some advice to your clients, they should know that they are missing quite a lot and that is not really how they should be doing their investment. It’s just like Warren buffet has said, you should be greedy when others are being fearful and you should be fearful when others are being greedy. That’s the right way that investment works.

I follow that rule, and that’s why I make sure I am investing when the market is at its lowest. When the bearish trend starts, I will always have patience for the bearish trend to push the market to the lowest that it can get, and then I would start my investment and hold till the bullish trend starts and people starts being greedy and FOMO, that’s when I would start getting ready to sell.

some still have the mindset that it needs large whale to have large demand.
when infact it can also be minnow sellers.
imagine the average buyer is only investing $340 of their paycheque
EG instead of offering 0.01btc for $340($34,000/btc), sellers offer 0.0099 $340($34,343.34/btc).
this means little changes with minnow orders. not whales.. can affect the price alot

minnow play causes
/\/\                                       /\/\
     \/\/\           or            /\/\/
            \/\              /\/\/
                \/\      /\/
whales play causes
/\/\                            |\/\
     |               or         |
     |                           |
     |/\/\                /\/\|    
unless there is pretty much a vertical line in the price. its probably not a institution whale pump or dumping

institutions dont play minnow games of buying up small 0.01 allotments per customer they recruit. they instead buy/sell large allotments. and then separately then offer small allotments to their customers by breaking up the large allotment privately (offmarket).
these minnow customers of institutions dont play the market daily. they hoard in custodial accounts or they withdraw to private key. they dont affect the day to day price.

and whale institutions havnt really been doing regular daily pump&dumps (vertical lines)
most price movements is actually caused by minnow sellers selling small parts of coins instead of whole hoard

No, it looks like bitcoin never hit $22K in 2017 because as far as I remember it only went up to $20k. The high demand for bitcoin has pushed its price to reach ATH in 2017. After 2017, bitcoin took 3 years after halving to reach ATH again where in December 2020 bitcoin price broke through ATH 2017 and reached $40K in price. I think you know how bitcoin's record price rises in 2021, so I don't need to continue.

Institutional investors play an important role in the increasing demand for bitcoin in the market. The increasing adoption has prompted many new people to invest and try their luck even though they don't have much knowledge. Some of them manage to earn commensurate returns, while others may lose due to poor investment management.

Those people seem afraid to buy now at the current price because they think the price can go down without notice. So when the price starts to increase, they will prepare to buy lower than the current price, which will not always happen because we know that after the price increase, it could still increase without stopping and makes them too late to buy at a low price. We can not blame them because they can still use that way to buy bitcoin while they will miss the good time to buy bitcoin.

looking at the last 6 months of the cheapest mining cost and the most expensive mining cost on the planet... and then adding in the market price


the market price is actually right at the cheap mining cost. the last time it even came this close to touching the bottom of mining cost, was after the 2018 correction down to $4k but even then the price happily stayed in the value window of that time

meaning right now bitcoin is cheap for its value, compared to other acquisition cost methods that vary depending on regions.

for instance  if you add in the euro-us cost. you will find that for the last 3 weeks even euro-us can buy cheaper then mine




pretty much all euope and japan and US can literally buy bitcoin cheaper then mining it. (bar some very lucky west asia/east slavic regions)

That's right, this is not the philosophy of the average investor in Bitcoin, but in any risky investment that for most means the highest possible profit in the shortest possible time. One would think that after so much time people will learn something, but unfortunately I have to say that the vast majority of people behave like sheep and always remain the same sheep. To put it in numbers, let's say that about 80% (or more) of investors have a sheep mentality, and about 20% have a wolf mentality - no wonder it ends up the same - wolves drive sheep into a corner and a bloodbath ensues, rare sheep avoid sharp teeth.

Luckily for wolves every new generation of crypto investors behaves mostly the same, the game of predators and prey has not changed for millions of years.

You need to understand that bitcoin has periods when it grows well. And during this period, you can’t buy bitcoin in any case, because, as history teaches us, after growth comes a fall. But when bitcoin falls very strongly in price, and everyone says that this bubble will burst soon, then it is worth buying and waiting for a new growth.

I'm sure everyone has a plan for investing or trading assets. but looking at the current market, buying bitcoin for the long term is certainly risky. especially for those beginners who easily panic seeing market movements.
the best way at this time is probably traders or short-term investors who buy when the correction and sell when the pump.
Be aware, not everyone has the same plan for storing their bitcoins for a long time.

Many investor start investing in 2020-2021. I think they didn’t now BSC journey. When bitcoin price was around $400-600$. Now bitcoin price huge increase but noway bitcoin price more dip than 2021.People play short term investment and i think they are greedy and the are panic seller.Now good time to buy bitcoin and hold long time to investment. I hope bitcoin price will be rise again.

Greed is human nature and people nowadays are afraid to take the risks but want to gain a huge profit which is far from reality. I think fear is one of the reasons why people are investing when the price is quite high. They fear the dip instead of taking it as an opportunity to buy. This is the mindset of those who apply the wrong strategy which is to buy high and sell low. A wise investor should know how to take advantage of every market situation.

Some people keep buying every dip since I saw the stablecoins price were decrease, even though most of people are panic and already sell his coins.

To people who bought Bitcoin on $69K or ATH, it's still not the high prices since the real Bitcoin value are higher than that. This reminds me back when my friends bought Bitcoin at $25K (ATH at that time) many people keep saying he's dumb since he's buy Bitcoin with high price in "that time". After Bitcoin reach $50K and never went back to $25K until now, they missed the moment to buy cheap Bitcoin when people thought it's still expensive.

It not that people are willing to Bitcoin at all time high price, they are not buying now that the price of the Bitcoin is cheap because the market seem to be at the bearish season and a lot of precaution is needed before buying the dip because the market next momentum this Q1 is still not certain.
Meanwhile, the best thing to do now buy little portion of BTC and wait till the market next trend is clear.

what you actually find is not everyone is/was willing

take a look at mining costs

in west asia/eastern slavic regions with electric costs at 4cent. they had had mining cost of 2021:20k 2022:$30k
in west euro/north america regions with electric costs at 12cent. they had had mining cost of 2021:30k 2022:$40k
..
in germany/japan regions with electric costs at 37cent. they had had mining cost of 2021:65k 2022:$75k

what you find is when the price went to $60k plus. hardly anyone was buying. but japan/germany still found it cheaper to buy than to mine. until even they reached their break even point and stopped buying. hense why the price didnt go to 80-100k. at just below the $70k mark it was 0% buy 100% sell sentiment

the same is on the bottom end. because if the price dropped below $30k now, no one can mine for profit. and everyone would be buying. meaning it would have a 0% sell and 100% buy sentiment. stopping it from going below $30k this year

i can tell you this, no russian/chinese bitcoiners were buying bitcoin at $60k+
i can tell you this, no japanese bitcoiners were mining bitcoin at $30k-

in short
if everyone on the planet can buy coin cheaper than mine it (price is dirt cheap). then the buy pressure is there
if everyone on the planet can mine coin cheaper than buy it (price is expensive). then the sell pressure is there

This is how actually works most investor's minds. A major part of traders and investors like to accumulate Bitcoin during green candle. Of course, it's a psychological issue, and the mindset up is like this. Investors think since Bitcoin dumping it would dump more. So they just wait for it and do not place the order to buy hence we notice no buying pressure. On the other hand, holders become panic during this dump session and place orders to sell Bitcoin, and that's how to price dump more.

This isn’t just how things normally go for bitcoin but this is how things normally are for all markets. I am constantly getting calls from clients when markets are doing very well or even at all time highs wanting to invest but when markets tank all they want to do is sell. People are too overcome with emotions and often let it guide their investing.

A bitcoiner don't have to be afraid of price fluctuations in cryptocurrency sphere, it's constant that cryptocurrency don't have a stagnant price, so converting the available coins to stable coins is good, but is not  to the extent that investors will be skeptical to purchase or ignore market because of their expectations towards bitcoin, i think that's wrong perceptions for investors, even though the price escalate to 20k some would like it to get close to 15k before making any turn or reciprocate to market, i noticed that no condition of bitcoin downfall always been appreciated to anyone who is into cryptocurrency, everyone is interested to get full advantages of market.

It is sad to know the fact that there are still many people who do not fully understand how Bitcoin works. Therefore they took the wrong step,
by buying Bitcoin during a bullish trend. Even though the benefits obtained will be much greater if they dare to buy Bitcoin during a bearish trend
like today. But most people are too afraid the price of Bitcoin will drop even lower after they buy Bitcoin. In fact, if we study Bitcoin properly,
we will know that no matter how deep the Bitcoin price goes down, it will always recover and go higher. That's why for people who are experienced
in the crypto world or people who study Bitcoin properly, will never be afraid to buy Bitcoin in a bearish trend, because they believe Bitcoin will
definitely go up again.

Its just how it is and as Bitcoin goes higher and higher, the more it hurts the investors especially those who bought at the peak.
When they see Bitcoin at its peak, many people are thinking that it will go even higher but that doesn't case always. Our brain thinks that it will go even higher but its the complete opposite but hey, who knows where is the peak right . That is why people are still buying even though they know that it is high already because they don't know where is the peak and they are gambling that it will go even higher.

Well, investing is like a game where there are winners and there are losers. Those who bought at the peak are the losers and those patient enough and know when to wait an opportunity like this are the winners. Now that it is confirmed that we are in a bear market already, now is the time to be greedy and buy when there is blood on the market. Accumulate more coins. There is a lower risk and a higher reward right now than buying at the peak where the risk is very high and the reward is very low. Anyway, many are expecting that Bitcoin will reach its previous ATH of $69,000 soon right? .

That's just the way the brain works. Whenever something drops in value or losses momentum, people will create negative associations with that. It it were good, or as good as they say, it wouldn't be losing value like this. That's the way people think. When you add negative press coverage and constant reminders how Bitcoin has lost 40-50% in recent months on top of that, what we are seeing now is the result of that.

The opposite happens when Bitcoin starts rising sharply. Everyone starts talking about it. That creates increased interest and people start buying again. You will then be bombarded with news and headlines saying that Bitcoin will reach $100k, 200k, and some crypto influencer suggests he will eat his dick on Twitter if it doesn't go up to $1 million a coin. The fear is now gone and it's back to buy whatever you can get your hands on.

Rinse and repeat.

Common mistake of every new investors is they're always on panic buying mode when the price is on top without knowing there's always a correction wherein reason most of them always ended losses. Well that's the sad fact that until now still happening because of greediness. Maybe they're not comfortable buying at the dip reason they still want to buy when there's a progress already.  I mean even their history when it comes such strategy isn't good.

This is to say that you understand that there are people out there that can really predict the market and say this will be the bottom of the market so hold on till the market gets to that level  Investors will naturally buy dips as it occurs because we don't know for sure where the bottom is so if he has been buying and the market dips some more and you still have the means, you buy some more. Even people like Michael Saylor that have been in the space forever bought Bitcoin at a higher price than today's $36+ per BTC

I barely understand exactly what you are emphasising on, even the reference points of values you portray, is contradictory everything, Incase you did not understand me very well, using your digits values to explain, let us assume that bitcoin price is forty thousand (40k) and everyone is rushing to purchase BTC and the market became competitive.

now the price have to decreased from (40k- 30k) buyers pause not to purchase again, because of fear, having the mindset that the price will decrease again to (20k) before they could purchase.

So if mistakenly the price really dropped to (20k) and accelerate again to a point that is higher than (40k) which is the initial point, to (50k) the profit status of some one who purchased 30k and 20k is not same.

Using this illustration to expatiate more, those investors that purchase Bitcoin in 2010 and 2011 and bank their btc till 2019 before they sell, and those who purchased in 2019 and same 2019 profit are not same...

It is the fear of thinking when they buy, the market might go down some more so they wait, and even when most traders still see that the market is going green, there is also the doubt that it might just be a trap and there might be another reversal but you will notice that traders will only jump into the market when the price is continually going up when they have missed the bottom, hopefully, FOMO again.
Notice I used the word "Traders" and not "INVESTORS" because real INVESTORs would take advantage of every dip even if it is by DCA because their focus is more long-term.

It may very well be the cause they are not buying. So much fear that it's still going to drop, they have been sending their altcoins to convert to USDT. Users seem to be united in the discord channel in seeking help on what to do. 20k makes sense because there is a support line than the $35k.

I have some doubts already that Bukele has no crypto advisor, which he had been buying even when the market already started to plunge. There are many BTC investors in El Salvador, someone close to him should have told him to hold his horse.

So what if we don't dip to 20K and this 33,000$ was the bottom. Even if we dip to 29K - 30K, does it really matter that we bought at 29K or 35K ? It will not matter when the price will reach 70,000$ and above. No one can catch the exact bottom.

For example, those who bought bitcoin at 8000$ and those who bought at 12,000$ way back in 2019 /2020, does it matter now when bitcoin is 5 to 6 times higher of those prices. But think of those who didn't buy at those prices, thinking it will go down more. Those are the people who usually buy the top in fear of missing out.

This is not only the psychology of Bitcoin investors, it is the psychology of retail investors in general, of the uneducated and unprofessional, which are the majority.

It is just the other way around (leaving aside other strategies such as DCA). You buy when others are afraid or there is a bloodbath, etc. Professional investors have it right. As in RE, you make money when you buy (at a cheap price).

Eh. I would call it 'adoption' if the people actually realized bitcoin's importance and hence stayed for the long-term. People who will enter at the top(hence why we've had blow-off tops in the past) and exit near-bottom on the other hand, eh nope.

That's always the case and even in 2017. But I think, as the same pattern goes, if they've bought at the top and they're worried and it's good if they haven't sold.
Just imagine how much bitcoin would be after the peak last year and the same for those who have bought on 2017 peak and just held it for a few years, they might get their returns soon and could have a 2x-3x if it's a whole bitcoin. But if it's just a few decimals, that won't really matter if it's about $500 and above.

The problem of investors skipping to purchase bitcoin is fear, now Bitcoin is low in price and affordable to purchase in quantity size but investors backslide, i suggest that one of the reasons while they don't want to buy Bitcoin now due to they are expecting Bitcoin to decrease more to the extent of getting to twenty thousand ( 20k)..lol.at least by this period we to know that people like to be in to purchase bitcoin when the price is elevating, but when it decreases they became afraid to purchase, so what do  you think that might be cause. 

When the price of bitcoin is on the rise, people think that it will rise more and therefore they try to jump in a running train. They buy quickily at that point in order to get the lower prices. But when the prices are stuck at lower levels and market sentiments is bearish, people still want to buy but they tend to wait in the hope to get more cheap prices.



That's another way to make the adoption faster. Once bitcoin crossed 50,000$ the first time, we saw how this news become mainstream and a lot of new investors and retailers joined in all time high. The same will happen when bitcoin will cross 100,000$.

Surprise surprise! Most people don't know crap about investing, and they mostly just join in on the hype hoping to get rich quick. And funnily enough, they'll be back at the next all-time highs, whenever that is.

Not everyone will buy with just this crash because there is more panic yet to come. If they buy the dip, they will have to buy again in the next dip of the dip and then buy again as it dips further while losing more money. The traders who had seen this happen in the past learned already that this bear could last for months. But the retail investors who had only started investing in the mid-2021, they'd probably panic selling already. I bet there will be another thread about BTC Death.

No, it is easy to explain.

Remember, the people that bought at $60 000+ did not know that it would be the next ATH, they saw the fast increase in the price and they might have thought that the $60 000+ could be going to $100 000+ at that rate.

The people not buying at $35 000 are also easy to explain, because people are experiencing a sharp drop in the price and they think that Bitcoin might be collapsing and they do not want to buy when the price is going down. (Also, some traders in other Commodities are not used to such volatility, so a price drop of almost 50% are a trigger for panic to them)

The more experienced Crypto trader see this as an opportunity to buy at the dip and to potentially sell at a huge profit in the future.  

So true! People don't realize an opportunity when it knocks on their door. But leaps in when they see the return is breaking previous record.  That's called FOMO. We have seen similar trend back in late 2017 when bitcoin reached 22k. We had seen tremendous buying pressure at that price level which we had not seen below this level.

But I believe, these group of people are just investors who are here to make money and don't know anything about the blockchain technology or how bitcoin works. But they are missing a golden opportunity for now.

This is partly because of a combination of greed and misinformation. As far as I remember I have been seeing people during crashes like this who are wishful for a bigger drop so that they can buy more bitcoin (for same amount of money), they are also misled by some manipulators on the internet into believing their wishes can come true.
For example when price was $3000 they were wishing for $1500 which is why the time it took to go from $4000 to $7000 was ridiculously short! (they all panic bought).

I think this is an idea people might not have noticed ot be too familiar with but I imagine a lot of retail investors like to buy crashes and it's companies competing with each other that like to sell them.

If you think about the 20%+ crashes in the stock market that happen, a lot are likely caused by companies trying to push the price lower in a coordinated effort to buy more for cheaper - the same might be true for bitcoin.

People were willing to buy bitcoin at all time high prices and everyone was greedy. Now when bitcoin is half the ATH price, we see no buying pressure. It's strange that people are willing to get bitcoin at high prices but they don't buy it when bitcoin is available at fair cheap prices. This is strange bitcoin investor's psychology.