The current bearish trend of the crypto queen Bitcoin (BTC), in search of its support, has prompted Binance, the largest crypto-exchange by market capitalization, to analyze the psychology of its traders.
In a tweet a few hours ago, which immediately went viral, Binance presented an image depicting the various possible moods each trader experiences based on two factors: price and time.
Point to where we are now pic.twitter.com/1l9Im5SDXh
— Binance (@binance) January 22, 2021
“Psychology of a Market Cycle” is the title of the chart. This is a veritable association of labels expressing the thoughts and emotions of traders at various times when the price of a crypto fluctuates.
Like any cycle, the beginning and the end are equivalent and the exchange has chosen precisely the ‘disbelief’ towards the success of the project, the object of trading. Here is the behavioural analysis:
The list of psychological labels for an uptrend:
When the graph shows the downward sloping curve, here are the associated moods:
Finally, here is the trader’s most painful phase. When price and time form a straight line, with associated labels:
Only when a movement occurs is there the sigh of relief that ends and the cycle begins again, returning to the phase of disbelief.
Binance, traders and psychology
As Binance, with its tweet, asks its traders to identify themselves with a specific point on the chart and its associated label, like a real survey, the CEO, CZ, underlines his vision through another tweet:
A month ago, we were giddy with btc at 21,000 ATH. Today we are upset with btc at $30,000. pic.twitter.com/ktAMms5FMF
— CZ 🔶 Binance (@cz_binance) January 22, 2021
“A month ago, we were giddy with BTC at 21,000 ATH. Today we are upset with BTC at $30,000”.
This is an objective consideration by CZ, which could in a way lift the spirits of his followers so they don’t succumb to the current retracement that BTC is experiencing.
Furthermore, not to lose sight of the projects, the real objects of trading, CZ has also recently announced that it has broadened its horizons by adding its crypto Binance Coin (BNB) to the adult content platform Pornhub.
The idea is to expand BNB’s use cases and participate in the mass adoption of crypto payment methods at the expense of existing ones such as credit cards.