Welcome to the Bear Trap! 🐻🚨
Feeling upset that you bought crypto and it immediately went down?
Don’t worry, this follows the pattern for basically every halving.
Here’s what usually happens: hype builds up beforehand, then there's a drop-off when the price doesn’t immediately double.
Over the next six months, the reduced supply caused by the halving will work its way through the markets, and the actual bull cycle will take off.
What to Expect:
September: Things will likely pick up again.
3-6 Months: A strong upward trend, followed by a crash back to earth.
This assumes the future will closely resemble the past, and I haven't seen any substantive changes that would cause things to play out differently this time. However, predicting the future is always uncertain.
Keep in Mind:
Prices in crypto are about 98% emotion and 2% fundamentals. Don’t expect things to behave rationally.
If you’re not in this for the long game, and you don’t have enough capital to manipulate the market in the short term, you probably shouldn’t be playing.
Bear Trap or Liquidity Grab? 🤔💡
What’s happening right now is known as a bear trap or a good old liquidity grab. Why does it happen? It’s done to provide whales with enough liquidity to buy in.
By semi-crashing the market, it triggers panic selling and stop-loss orders, forcing traders to sell so the needed supply is met.
This is a well-known, nasty move in finance overall. Don’t fall for this trap!
Enjoy the rest of your day and stay savvy! 📈💪