Everyone knows the market cliche of “buy low, sell high” yet so few people can actually execute on it. The main reason is because market sentiment is at its most negative when prices are low and positive when high. Savvy investors are required to be contrarians and go against general market sentiment in order to apply that rule. All of this is done on the bleeding edge of the market without any guarantee of success.
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.
The Chinese government banning crypto is a regular tradition that dates back to 2013. Every time they ban crypto the markets tend to panic… this video highlights all the various China FUD articles and crashes on the charts.
China has a large crypto community and they’ve contributed a ton of value to the space, yet their government continues to make things difficult for them. The majority of hashing power and mining equipment comes from the Chinese community and they’ve always been good at finding clever ways to circumvent restrictions.
Here’s a list of articles on the various “crypto bans” from China: