Bullish trap_What the lesson?

[Bushdark]

What is the lesson?

The lesson here is not to FOMO.. many people FOMO when Bitcoin prices rise.. they feel they haven't accumulated enough and force themselves to buy more just in case the price rises.. but instead, the price drops, and they complain about buying at a higher price. This is why one needs to wait and stay patient, because not all bulls are real.. sometimes a price increase is only temporary, and buying out of FOMO can leave them very disappointed if it doesn't match their expectations, and it can even lead to losses if they panic and sell.

I have also seen so many cases when investors where buying Bitcoin at the top due to the sudden push in the price of Bitcoin.
I think such kind of investors are pure emotional investors that supposed to wait a little before investing when the price has already started pumping. There are different opportunities in the market to make money but it's unfortunate that many investors are rather trying to wait until they see the price of Bitcoin pumping before they will have the confidence and conviction that it's a good time for them to buy and invest in Bitcoin.

[adultcrypto]

I have also seen so many cases when investors where buying Bitcoin at the top due to the sudden push in the price of Bitcoin.
I think such kind of investors are pure emotional investors that supposed to wait a little before investing when the price has already started pumping. There are different opportunities in the market to make money but it's unfortunate that many investors are rather trying to wait until they see the price of Bitcoin pumping before they will have the confidence and conviction that it's a good time for them to buy and invest in Bitcoin.

Investors who bought bitcoin at the top can only be called emotional if they did that out of FOMO and not when they are accumulating to hold. For instance, Microstrategy have been known for accumulating bitcoin whenever he feels necessary irrespective of what the price is, you can't call that being emotional because the point you are calling the top is only known as top after price has already moved away from that region. Finally, someone using a method like the DCA strategy can buy bitcoin at anytime without caring about the price.

[Nathrixxx]

A sensitive trader or investor should know when there is a bullish or bearish trap set by the market. Sometimes, you will discover that whales are taking action in the market or making it dump to take advantage of short-term performance manipulation, and the market could also appear in the same manner, but the more sensitive we are to knowing all this, the better it will be for us. This is where I mostly caution myself: when I see a sudden breakout of the market, I try to figure out the reason behind it before making any decision to either sell or buy.

[PERtua]

The important thing I think is that uncertainty is on the agenda, not off it, so don't constantly change plans. A hike in price doesn't mean that the rise is real, and a pullback doesn't mean that it was a bull trap. Having a long-term allocation plan can help lessen the inclination to make short-term decisions based on emotions, whether the market is climbing or falling. The hard part is that we shall never be able to determine the bottom or the top before we get there.

[Derekfunds]

A sensitive trader or investor should know when there is a bullish or bearish trap set by the market. Sometimes, you will discover that whales are taking action in the market or making it dump to take advantage of short-term performance manipulation, and the market could also appear in the same manner, but the more sensitive we are to knowing all this, the better it will be for us. This is where I mostly caution myself: when I see a sudden breakout of the market, I try to figure out the reason behind it before making any decision to either sell or buy.

I don't totally agree with you because it is not all bullish or bearish trap an investor or traders do know unless it is very obvious because if they are this sensitive like you I don't think traders will be making losses. However, there are some bullish or bearish trap that folks can not know for sure untill the actual move is been made by the market, just considering what is happening in the market now, no one know for sure if the market is turning bullish or not untill the actual move is made that is when we would be sure and as an investor, you don't have any business with knowing this since it doesn't affect our accumulation.

[Humblevirus]

What is the lesson?

The lesson here is not to FOMO.. many people FOMO when Bitcoin prices rise.. they feel they haven't accumulated enough and force themselves to buy more just in case the price rises.. but instead, the price drops, and they complain about buying at a higher price. This is why one needs to wait and stay patient, because not all bulls are real.. sometimes a price increase is only temporary, and buying out of FOMO can leave them very disappointed if it doesn't match their expectations, and it can even lead to losses if they panic and sell.

I have also seen so many cases when investors where buying Bitcoin at the top due to the sudden push in the price of Bitcoin.
I think such kind of investors are pure emotional investors that supposed to wait a little before investing when the price has already started pumping. There are different opportunities in the market to make money but it's unfortunate that many investors are rather trying to wait until they see the price of Bitcoin pumping before they will have the confidence and conviction that it's a good time for them to buy and invest in Bitcoin.

The point is that it is not easy to read the market, and that is why some people believe that when the market starts pumping, it will likely continue like that. But, not knowing how the crypto market works, they may make the wrong decisions.Even me, when I first came into the crypto industry, my first buy was when I saw that the Bitcoin market was moving up. I was afraid that if I bought when the market was going down, the market might keep going down. So, I realized that this is more of the work of a trader, not an investor.

An investor’s idea is to be able to hold for a long period of time, not to make short-term profits. So, for an investor, the best approach is to accumulate, and this can be done by using the DCA method. That means buying regularly, either weekly or monthly. This is how some opportunities can be seized in the crypto industry.Waiting for a specific price target when you are not good at analysis is not a good strategy.

[Jaksonhard]

A sensitive trader or investor should know when there is a bullish or bearish trap set by the market. Sometimes, you will discover that whales are taking action in the market or making it dump to take advantage of short-term performance manipulation, and the market could also appear in the same manner, but the more sensitive we are to knowing all this, the better it will be for us. This is where I mostly caution myself: when I see a sudden breakout of the market, I try to figure out the reason behind it before making any decision to either sell or buy.

I don't totally agree with you because it is not all bullish or bearish trap an investor or traders do know unless it is very obvious because if they are this sensitive like you I don't think traders will be making losses. However, there are some bullish or bearish trap that folks can not know for sure untill the actual move is been made by the market, just considering what is happening in the market now, no one know for sure if the market is turning bullish or not untill the actual move is made that is when we would be sure and as an investor, you don't have any business with knowing this since it doesn't affect our accumulation.

Yes, we can never be certain until it actually happens if a move is a genuine break out, a bull trap or a bear trap! We may be right on the bubble shape, but the market may change when we least expect it to. That's why it is dangerous to try and forecast each move in the market.

For investors who plan to hold their investment for the long term and don't plan to touch it for regular accumulation, this state of flux might not be a big concern if they know they are accumulating. Instead of fretting over every short-term price movement, they can set their investment strategy and risk appetite, which is the more important thing to do. For traders, they have to be more mindful of signals and handle risks properly.

[DiMarxist]

Some person somewhere is complaining why the Bitcoin price is rising now cause he does not feel he has bought sufficiently for price to begin rising now and for this he feels is a trap that price is going up right now.

People talk about "bull trap" and it is worth noting that this has been a big hindrance for people failing to buy Bitcoin when they should have, all cause that they were thinking it that price will fall down back before they can buy.

What is the lesson?

The reason is buy as much as possible when, the price of Bitcoin is down and the probability of buying at a lower price is higher. But no body should buy in panic simply because the price of Bitcoin has started to appreciate after a long time. Buying Bitcoin should not be based in price but, it Should be based on how consistent that any individuals is when it comes to the method that the investor is using in to invest in Bitcoin. Bullish trap or not the increase in the price of Bitcoin should not serves as a barrier to anyone in buying Bitcoin if you ask me.

[GeorgeJohn]

<..>

The reason is buy as much as possible when, the price of Bitcoin is down and the probability of buying at a lower price is higher. But no body should buy in panic simply because the price of Bitcoin has started to appreciate after a long time.

If you observe the traffics of people who have interest to purchase bitcoin you will notice that majority of them doesn't have interest to invest in bitcoin when the price is depreciating, Most of the majority of the newly investors developed interest when the price is high..I dont know if they think that investing when the price is low is waste of resources or not...

Buying Bitcoin should not be based in price but, it Should be based on how consistent that any individuals is when it comes to the method that the investor is using in to invest in Bitcoin. Bullish trap or not the increase in the price of Bitcoin should not serves as a barrier to anyone in buying Bitcoin if you ask me.

Buying of bitcoin to hold neither for short-term or long-term, it should be by passion, because if you dont have passion on bitcoin, you will not know the actual period to purchase to bitcoin...But people who invest due to profit they will make from bitcoin, they always concentrate on the price, before they will decide to give it a trial, and that has been the problem most of the people newly investors consider before investing....

[osasshem]

If the person had accepted to use DCA during the period of contemplating and expect more price decline, he would have been able to acquire good quantity before the market started recovering and would not have bought with FOMO.

What is the lesson?

In whatever price position or level you find yourself in the crypto market and you have the intentions to buy, just buy without looking for a bottom. The current price position is the best at that moment to buy, but when it comes to selling for profits, that's when the thoughts of what price to sell at should come. With Bitcoin, you barely make losses if you are patient, with enough patience you'll see remarkable profits.

[liasbaa]

Some person somewhere is complaining why the Bitcoin price is rising now cause he does not feel he has bought sufficiently for price to begin rising now and for this he feels is a trap that price is going up right now.

People talk about "bull trap" and it is worth noting that this has been a big hindrance for people failing to buy Bitcoin when they should have, all cause that they were thinking it that price will fall down back before they can buy.

These are not people doubting bitcoin but that they where having a target price for Bitcoin to touch down low again before purchasing and they miss a good price to buy as Bitcoin price keep covering heights. Yesterday bitcoin was 77k and immediately these very people are now buying out of FOMO at a higher price and could not wait for the .false breakout to happen.

What is the lesson?

Some traders buy Bitcoin during bullish times and exit the market with their profits in a very short time but if the price falls after buying, it will create an embarrassing situation for them. Such traders fall into the bullish trap. You got proven that the increase in the price of Bitcoin at this moment was not a trap. The price had crossed almost $87k and there is a possibility of crossing $90k this month.

There will be all kinds of reactions in the market. Those who have become real investors are not very reactive during the decline or increase in the price. Those smart investors regularly accumulate Bitcoin and build up their holdings.

There are those who doubt but they are actually harming themselves and the doubt will continue to grow but the market does not spare anyone. The Bitcoin market is going to fall again by fluctuating with the demand at its own pace but this is a short term decline, probably another bullish soon and that period the price will over $90k.

[bhadz]

If the person had accepted to use DCA during the period of contemplating and expect more price decline, he would have been able to acquire good quantity before the market started recovering and would not have bought with FOMO.

But that's not what they do, what they like is to react whenever the price goes up. They've been into FOMO and they never learn that it's better to be early than the others who only buys when the price goes up. The discouragement on them is huge when the price is low, instead of doing something and taking up action to buy at that time, they don't. And we get to see them back and active when the price keeps on moving up and becomes more expensive, while our strategy is to buy low and sell high theirs is the opposite - buy high and sell low due to panic.

[Dizciple]

In whatever price position or level you find yourself in the crypto market and you have the intentions to buy, just buy without looking for a bottom. The current price position is the best at that moment to buy, but when it comes to selling for profits, that's when the thoughts of what price to sell at should come. With Bitcoin, you barely make losses if you are patient, with enough patience you'll see remarkable profits.

Bullish trap comes with the lesson of you hot buying Bitcoin because you want to sell in few days or weeks because you'll not be able to do that  and that'll make you become angry, your money can get stuck in the market for many months and if it's money you'll need for urgent spending then you'll have to sell in losses. Bull traps happens more during bear market because that's the time most investors are in a rush to make profit and always watching the market. To avoid being caught in a bullish trap, don't buy Bitcoin to sell immediately but buy to hold and then you can decide to sell at anytime that you want to sell but not putting a time limits to when you have to sell and this will help you not to sell in losses. Always observe the resistance level of Bitcoin to know if it just got broken and wait for a retest of that price before trading if you want to trade but as for investing, always buy and hold and the holding time should be for a long time not short term.

[osasshem]

- buy high and sell low due to panic.

For the reason that they refuse to understand or make use of the market behaviour, during the bullish and bearish season of the market, they find themselves in a loop of continuously buying at the top and sell at losses. I use to have this same experience, and having repeatedly gone through this circle, I noticed that I faced more of losses or a little profit than what was supposed if the right action was taken at a better market position. I came to settle with DCA and whatever I acquired from campaigns.

[Bushdark]

If the person had accepted to use DCA during the period of contemplating and expect more price decline, he would have been able to acquire good quantity before the market started recovering and would not have bought with FOMO.

But that's not what they do, what they like is to react whenever the price goes up. They've been into FOMO and they never learn that it's better to be early than the others who only buys when the price goes up. The discouragement on them is huge when the price is low, instead of doing something and taking up action to buy at that time, they don't. And we get to see them back and active when the price keeps on moving up and becomes more expensive, while our strategy is to buy low and sell high theirs is the opposite - buy high and sell low due to panic.

Those people that bought Bitcoin when the price was $120k are still regretting till now why they added emotions to their Bitcoin investments. Some investors don't learn at all and all they care is how they can make quick profits from the market.

They only buy when they have the assurance that the price of Bitcoin has started going up and it will continue to go up. These kind of investors are not interested in what you tell them or the advise you are giving them, all they want to see is profit and that is what will intrigue them to invest. It is beneficial for investors to buy gradually and they are also opened to use the DCA strategy to accumulate Bitcoin gradually but I guess they are not interested in that.

[JoyceBTC]

What is the lesson?

The lesson here is not to FOMO.. many people FOMO when Bitcoin prices rise.. they feel they haven't accumulated enough and force themselves to buy more just in case the price rises.. but instead, the price drops, and they complain about buying at a higher price. This is why one needs to wait and stay patient, because not all bulls are real.. sometimes a price increase is only temporary, and buying out of FOMO can leave them very disappointed if it doesn't match their expectations, and it can even lead to losses if they panic and sell.

I have also seen so many cases when investors where buying Bitcoin at the top due to the sudden push in the price of Bitcoin.
I think such kind of investors are pure emotional investors that supposed to wait a little before investing when the price has already started pumping. There are different opportunities in the market to make money but it's unfortunate that many investors are rather trying to wait until they see the price of Bitcoin pumping before they will have the confidence and conviction that it's a good time for them to buy and invest in Bitcoin.

If they really want to be investors and not traders, then that shouldn’t be their major focus on the best time to buy, since real investors think towards long term. As a long term investor, it is always expected for bitcoin price to always move, either rising or falling and looking towards longterm, the price movement is not suppose to affect you emotionally, the aim is to remain patient and accumulate more to achieve future target.

[bhadz]

- buy high and sell low due to panic.

For the reason that they refuse to understand or make use of the market behaviour, during the bullish and bearish season of the market, they find themselves in a loop of continuously buying at the top and sell at losses. I use to have this same experience, and having repeatedly gone through this circle, I noticed that I faced more of losses or a little profit than what was supposed if the right action was taken at a better market position. I came to settle with DCA and whatever I acquired from campaigns.

Anyone who isn't prepared of the market will do this. And that's why being informed and understanding how bitcoin moves will help us avoid the same mistake. And everybody who did this mistake in the past won't be doing anymore, at least for those who stayed and pursued the market because they know that it's profitable in the long run.

Those people that bought Bitcoin when the price was $120k are still regretting till now why they added emotions to their Bitcoin investments. Some investors don't learn at all and all they care is how they can make quick profits from the market.

They only buy when they have the assurance that the price of Bitcoin has started going up and it will continue to go up. These kind of investors are not interested in what you tell them or the advise you are giving them, all they want to see is profit and that is what will intrigue them to invest. It is beneficial for investors to buy gradually and they are also opened to use the DCA strategy to accumulate Bitcoin gradually but I guess they are not interested in that.

I've seen the same scenario for people who bought at the ATH of 2017 and 2021. But if they will be patient and will wait for the next cycles, they'll be able to surpass their buying price and the paper loss they have will be gone and will replace by profit eventually.