Welcome to the Bear Trap! đ»đš
Feeling upset that you bought crypto and it immediately went down?
Donât worry, this follows the pattern for basically every halving.
Hereâs what usually happens: hype builds up beforehand, then there's a drop-off when the price doesnât 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. Donât expect things to behave rationally.
If youâre not in this for the long game, and you donât have enough capital to manipulate the market in the short term, you probably shouldnât be playing.
Bear Trap or Liquidity Grab? đ€đĄ
Whatâs happening right now is known as a bear trap or a good old liquidity grab. Why does it happen? Itâs 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. Donât fall for this trap!
Enjoy the rest of your day and stay savvy! đđȘ