Mainstream media tends to fuel hype by taunting traders into buying highs and shaking them out with fear at the lows. Over the past 10 years, bitcoin has been one of the most cyclical markets in the world. It’s often declared as dead, a ponzi scheme or attacked by trolls during the lowest points of capitulation. During the parabolic price rises market sentiment praises crypto and highlights how rich everyone is getting.
During the highs, profit takers are ridiculed and at the lows people preach about the risks of buying dips. Being a contrarian generally only works during market extremes when prices are out of balance. If you go against the herd mid trend, you could end up cutting profits short or buying dips too early. All of this is much easier said than done and timing is everything.
In this video we’re going to look at the two extremes of bitcoin price action during the last few cycles and examine market sentiment. We’ll see what kind of narratives were being pushed by the media as well as the general sentiment of investors.