FOMO (Fear of Missing Out) translates to 'the fear of missing an opportunity.' It is the feeling when a person is afraid they will miss out on a lucrative deal or a chance to earn if they don't buy the asset right now.
For example, when everyone around is talking about how cryptocurrencies are rising, many start to panic: 'If I don't buy now, I'll miss the chance to get rich!' This drives people to make emotional, thoughtless purchases, often at the peak price.
FOMO is a trap because the market often reverses in the opposite direction when too many people are buying under the influence of this fear.
Technical analysis is the foundation of successful trading on exchanges. It is the chart of the instrument, the break of price levels and trend lines that provide the initial signals for action. News and fundamental factors are certainly important, but I consider their impact only after confirming technical conditions.
The current situation in cryptocurrencies is reminiscent of a vivid example: mass FOMO, rising demand for BTC-ETF, falling Bitcoin balances on exchanges, and forecasts of supply shock fuel euphoria. But the market, as a tool for capital redistribution, has already accounted for most of the expectations in the price. It is important to remember: most people lose by buying at the highs.
My position: emotions and FOMO should not influence decisions. Only analyzing the chart with confirmation of key signals helps to stay one step ahead. The conditions for growth remain the same previous.
The price is approaching📈 the level from which a bounce📉 is expected at 107,500, where the purple resistance line of the bullish trend is located. Previously, the price bounced📉 from it on November 22 and December 5, which means the market may repeat this condition.
A price drop is expected after breaking the level of 90,715.
Remember, the market will always punish those who rely on emotions rather than strategy.