A Fundamental Dynamic That Tends To Govern Every Bull Market

By Sapphire Crypto | Sapphire Crypto | 7 Dec 2023


In The Rear-View Mirror

The pain and torment of 2022 is by now a distant memory. Even if you were a casualty or collateral damage of the previous bear market, you might have readjusted your sites. Bear markets are brutal and have a way of deceiving investors into thinking that the market will never turn. When you peruse some of the more prominent X accounts, you will understand what I am suggesting.

To be calling for a $12K Bitcoin at this stage of the game is not only unrealistic, it’s delusional. Yes, a swan event could always strike. However, outside of such an event, it’s almost impossible. An experienced trader will always choose to rely on confluence. Quite simply, there is no confluence to back such an outlandish price prediction especially, at this stage of the game.

Similarly, many were unable to shift bearish in 2022. They interpreted every dump as an opportunity, whereas in reality, dumps were part of a larger, cascading downward spiral. The market has a way of communicating its true intention, and watching out for the following dynamic can aid in discerning the overall sentiment and trajectory of the market.

Overruled

In an aggressively bullish market, bearish signals are often negated. In other words, bearish patterns and signals will often fail. The moment you begin to see this dynamic unfolding, you can be sure that the market is overly bullish. As a result, betting against the market now becomes incredibly risky, even with the assistance of technical analysis.

The same dynamic is at work in a bear market. Bullish moves, patterns, and signals fail. There may well be an initial move. However, it’s often short-lived and usually fails. Simultaneously, this doesn’t suggest that there are no corrections in a bull market. On the contrary, historically, there are pretty significant corrections. However, what it does imply is an extremely unpredictable market.

This is why I tend to take on more of a HODL approach in a bull market. I don’t look to take profits. I build positions with long-term time horizons. I do however tend to set aside an allocation for trading. I realize profits with these accounts. However, long-term holdings remain untouched. This approach can be revisited, but only under stringent circumstances.

041dba4ddbb45e8ee2eecb13e30edaf7755b621504298135e01449736b9c7e87.png

Free CAKE

Final Thoughts

Bitcoin has a way of exceeding even the most bullish predictions, at times. It becomes highly unpredictable and can surprise both sides of the market. It’s important to bear this in mind. Especially, as we move deeper into the bull market. Crazy things can happen at any moment! See you next time!

57b0a1150c4ce5a3c3b1e8bc7015ec53d35cd62b229910309c5482565d40477a.png

Free ChainLink

Disclaimer

First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.

This article was first published on Sapphire Crypto.

dc85cc652d13571a8860e8d6d812239d8018dee27b8af3215e915b12c7ae0528.png

be16f86b20bd9dd120b840e96e857d9da9b6d67126aa3ef58eb1c1340ffcab37.png

Free Solana

27a19ff94b693d377db6c80d2e2d720f03e1dbfc1492961128e4d75e9f1fb431.png

Free BFG Every 5 Min (NEW)

623972a32590fc90500b125a176f2c2a02639b6a5187029ef39c9626d9db3c73.png

Free Hourly BTC

8a5d6a060400f1887bd85685d488ae493be6905b20eb5e260fd03f1f6ed4d14b.png

Even More Free BTC

How do you rate this article?

35


Sapphire Crypto
Sapphire Crypto

Interesting views, news, opinions and all things Crypto. Independent and honest assessments of Crypto projects and earning opportunities within the space. Opinions are my own and not financial advice. Sapphirecrypto.org


Sapphire Crypto
Sapphire Crypto

Interesting views, news, opinions and all things Crypto. Independent and honest assessments of Crypto projects and earning opportunities within the space. Opinions are my own and not financial advice.

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.