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Bitcoin and other cryptocurrency currencies seemed to have undergone a correction after a rapid increase yesterday. Bitcoin suddenly fell to $48,400. The pullback in Bitcoin’s price inevitably created an atmosphere of panic in the cryptocurrency market, which may lead many investors to panic sell. Analyst Stockmoney Lizards issued warnings to investors considering this possibility. Let’s take a look at the analyst’s assessments.
The Psychology of a Bitcoin Investor
When Bitcoin experiences rapid increases, investors naturally develop a sentiment that the rise will continue. This sentiment leads to questions among investors about possibly missing out on an opportunity.
As questions mount, actions are taken based on this sentiment, and the market is jumped into at high prices, especially Bitcoin, as if it will always rise. What follows is often the exact opposite of expectations. Bitcoin and other cryptocurrencies undergo a correction, and investors who entered at high prices, fearing further declines, end up selling at a loss.
Both scenarios are actually periods of wrong entries and exits. Analyst Stockmoney Lizards advises against panic selling in such situations and reminds investors of the appropriate attitude to adopt.
Popular Analyst Warns Bitcoin Investors
While warning Bitcoin investors, Analyst Stockmoney Lizards illustrates the situation by sharing the Bitcoin price as seen below.
The analyst makes the following classic reminder to Bitcoin investors:
“The cryptocurrency Bitcoin price reached $50,000. This is yet another perfect example of why one should not buy into FOMO, the fear of missing out, these days. However, the short-term outlook still maintains an upward trend. Now is the time to take profits in Bitcoin.”
Analyst Stockmoney Lizards’ comment actually suggests buying the dips. The analyst, while giving lesson-like advice to his followers, points out that the levels to enter should be these levels. Looking at the Bitcoin price as I write this article, BTC is trading at $48,723.
