As humans, there's this tendency for us to assume that things will always be the way they are. So when times are rough, we hold on to that notion and plan accordingly and vice versa when things are good.
The crypto market has taught on numerous occasions that while it is humans behind the trading bots and all the stats, there's a pattern it follows that has no human emotion affiliated with it. This is why people are often advised to trade the market and not their sentiment.
If you're trader, you simply buy what will pump based on the numbers and then sell it right before it dumps to squeeze out profit. It is the fundamental of trading in pretty much every industry and also applied in crypto trading.
A lot has been said about this gruelling bear market that we find ourselves in but the reality is that in the grand scheme of things, it's just a market. This means that the fundamental trading sequence of buy low and sell high still holds.
The only difference when evaluating the buy low and sell high pattern for the general market is that you're going to be looking at a much grander chart. For the untrained eye, it may not seem like much but in reality, there's a pattern that the trader can use yo make informed decisions about buying and selling.
So,coming back to the bit about human nature, it is important to avoid projecting that emotion to the crypto market because the machinery behind the market's inklings doesn't follow emotions. It follows calculated decisions made by traders with fat portfolios and various levels of risk tolerance.
Bear or Bull
When you trade with your feelings rather than the market, one of the hardest things to do is shift your mentality. The fact that you are emotionally invested in every project you put your money in makes it infinitely harder to look beyond.
For example, if you buy Hive today or at any given time, there's a chance that you're not just buying it because of what the numbers say on the chart. You're buying it because you believe in the project and as such, you get emotionally attached.
Now it is important to add that I don't have any issue with people who choose to be emotionally attached to assets. I am guilty of this very act and frankly speaking, I think we need more people like this to ensure that there's a human touch and we're not all turning to AI.
At the same time, this emotional bond to asset is the same reason it is hard to pick a moment to buy and to sell. We simply just act according to our lives' demands and nothing more.
Multi year accumulation
As we approach what I suspect to be a bull market, it is important to remember to have a healthy mix of emotions and logic. We need to first and foremost, ensure we make informed decisions while protecting what we believe in.
In the past, I talked about the unlikelihood of another face melting bull run but with each passing day of accumulation, I'm starting to think that I might have been wrong. I'm starting to think that our friends at UpBit, for example, are cooking something massive and are simply just waiting for a trigger to activate the market.
I think we've spent too much time focusing on Bitcoin's halvening and other traditional trigger events rather than the fact that there's accumulation going on. It's not just normal accumulation too, it's the kind that has been going on for a few years now.
The way I see it, a mental bull run that takes us close to the previous highs of yesteryears is on the horizon. We might not see all time highs for assets we're familiar with but the relatively unknown assets like GLX and SPS that are experiencing their first bull run might give us something to smile about.