The Psychology Behind the Rebound

Every rebound of Bitcoin is essentially a collective psychological game. When prices are falling, no one believes in the bottom; when prices are rising, no one trusts the pullback. Market sentiment always swings between extremes, and the main players often exploit this uncertainty.

When prices repeatedly rebound, human nature naturally generates "fear of missing out." At this point, buying frenzies emerge, volatility amplifies, and the market enters a sentiment-driven phase. But smart capital pays more attention to chip positioning—whether accumulation at low levels is complete and whether trapped positions at high levels have been digested. #Celebrating New Year at Gate Square

Historically, before a major trend begins, there are often multiple "false starts." The goal is simple: to shake out short-term traders and concentrate the chips. True trends are never loud or flashy.

Another indicator is the change in stablecoin market cap. If stablecoins are expanding again, it indicates a return of off-chain funds; if it's just coin-to-coin rotation, it's more about stock game dynamics. If a rebound lacks new liquidity support, its sustainability is often limited.

Many ask: Should I get in now? The real issue isn't timing but strategy. If you're a short-term trader, a rebound is a volatility bonus; if you're a long-term investor, you should focus more on the cycle position rather than daily price movements.

The market never rewards predictors, only disciplined practitioners. The charm of Bitcoin lies in its constant opportunity, but only for those who are prepared.