2026-01-21 11:22:30

How exactly does the crypto market turn? To put it simply, it's emotions acting up.

People's fear, greed, hesitation, combined with collective consensus, all these things mixed together become the price. The price itself isn't mysterious; it's just the result of pricing these emotions.

Interestingly, this isn't a one-way street. Emotions drive prices away from rationality — everyone understands that. But conversely, price fluctuations immediately change your expectations of the market, which in turn influences the next round of emotions. The two are intertwined, forming a vicious cycle.

So why do many people find the market hard to understand? Because this logic isn't linear to begin with, and many try to apply theories to it, only to get more confused the more they try.

But these principles, no matter how many times you read them in books, are useless. True enlightenment comes from real, hands-on market experience. You've experienced that blind confidence during a bull market — thinking everything will rise; and the collective panic during a bear market — everyone wants to run. When you calm down and look at how prices are formed, you'll realize: the market never cares about logic; it only responds to the beat of emotions.

To stay clear-headed through cycles, you must recognize this reality — don't get swept away by emotions.

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MetaMisfit

· 48m ago

That's correct, but I think most people simply can't avoid being swept up, including myself. The real problem is — there's an insurmountable gap between knowing and doing. When the market is falling, the mind goes blank, and there's no way to think about "facing reality."

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just_another_fish

· 4h ago

That's right, this is how I got liquidated haha --- In a bull market, the mind really can't stay rational. Looking back, it's embarrassing --- Do you understand the feeling of bouncing back and forth? One moment panic, the next greed --- The key is that when the price jumps, your mentality collapses with it, and you can't stop --- What's the use of reading books? You still have to pay tuition fees to understand --- The problem is how to avoid being driven by emotions, it's too difficult --- I've been caught in this cycle before, can't break the situation --- Really, even if you see through it, you can't change it, you'll still get liquidated

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SleepTrader

· 4h ago

You're so right. That's the reason I suffered a huge loss last year... Still researching fundamentals there, and ended up being overwhelmed by a wave of emotions.

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YieldWhisperer

· 4h ago

nah actually the math doesn't check out here either. emotion's just one variable—liquidity, leverage, and bot flows are doing way more heavy lifting than ppl wanna admit

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alpha_leaker

· 4h ago

That's right, it's an emotional game. I've seen through it long ago, the problem is I can't stop my fingers. Now I understand, all the theories are bullshit; practical experience is the real teacher. You're right, this cycle is really dead-end, still trapped or still caught. Honestly, sometimes I can't hold it together either, rushing in and then regretting it. The key is whether you can stay sober during the madness, maximum difficulty.

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