So my dear ones,
Have you ever heard of the psychology of market cycles on Wall Street? It is an interesting and relevant topic for those who seek to understand the fluctuations of financial markets over time.
Basically, market cycles refer to the phases of high and low that occur in a financial market. These phases are influenced by various factors, such as the economic situation, investor behavior, and geopolitical events.
The most interesting thing is that the psychology of market cycles is driven by the emotions of those who invest! That's right. When the market is up, investors tend to become euphoric and invest more money (FOMO). However, in moments of decline, fear and panic can lead investors to sell everything quickly, which can further worsen the situation and trigger a cascade effect in the market. (I will put this study summarized in an image below.)
Based on this study (Psychology of a market cycle), graphic patterns, and mainly regions of interest in the Bitcoin graph, I made a projection using trend analysis and regions of interest in the Bitcoin graph. I use the "cup and handle" pattern to project a possible target for the next halving.
The projection uses the measurements from the top to the bottom of the cup to reach the target. I believe the bottom of the cup would be in the trigger region of the last halving in 2020, around $9,000 and $4,000. The top of the pattern would be in the $69,000 region (last high). The cup handle would form in the region of the last top as well. The handle's bottom would be in the region of $52,700 (strongest support closest). The break of this pattern would lead us to the target around $139,000.
The Bitcoin price history from 2009 until now shows that the currency tends to appreciate more and more. In 2009, the value of Bitcoin was close to zero since the digital currency was still in its early development stages. In 2010, the value of Bitcoin increased to about $0.001. In 2011, the value of Bitcoin rose to $1, and in 2013, it surpassed $1,000 for the first time. In 2017, the value of Bitcoin reached its historical record of $20,000 until that moment. In 2021, we all know where we went, ATH.
I believe this is the last chance to buy Bitcoin below $20,000 and encourage you to buy when there's blood in the streets, just don't sell when there's music playing.. haha. Because Bitcoin will reach unimaginable values in the long run.
Great deals to everyone.