Market psychology studies the relationship between market trends and participants' emotions, and the fluctuations in investor sentiment form market psychological cycles. In the rising phase, optimism and greed lead to buying, which can create bubbles, while in the declining phase, negative sentiment leads to selling. Investors can use this to grasp entry and exit timing, and technical analysis indicators can measure market psychology. For example, Bitcoin's bull market in 2017 was driven by market psychology, which later reversed and caused a correction. At the same time, cognitive biases such as confirmation bias, loss aversion, and the endowment effect often lead investors to make irrational decisions, affecting individuals and the market. #BTC☀ #加密市场反弹
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