btc_counterflow

charts_and_numbers

We conducted a detailed analysis to identify the moments of significant drops in Bitcoin dominance during the final phase of the bull run:
![](https://m.stacker.news/65949)

Additionally, we compared cycles to understand where these downward movements in dominance began:


From this, we can conclude the following points:
![](https://m.stacker.news/65950)

- All drops in dominance occurred after Bitcoin price peaks.

- In the previous cycle, dominance declines happened in succession, with very short intervals between events.

- In the 2017 cycle (in orange), the first drop occurred as the price approached the ATH (all-time high) of that time, and the second occurred after the price reached the cycle’s peak value.


Do you know why a sharp drop in Bitcoin dominance is often seen as a negative signal for the market's health?

Leave your comment!

🚨 Dominance dropping is never a good sign.


There is a pattern of 3 years of bull market followed by 1 year of bear market that tends to repeat.  

This pattern has theoretically persisted due to the Halving, creating a frequency that is likely to repeat in the following years. Even though the Halving's impact may diminish over time, the cycle remains.  

What about you? Do you believe in Bitcoin's 4-year cycle?
![](https://m.stacker.news/64759)

♻️📈Do you believe in Bitcoin's 4-year cycle?

BooksAndArticles

**Why does "Sell the News" happen?**

https://bitcoincounterflow.com/wp-content/uploads/2024/03/shutterstock_1571041357.webp

**- Market Anticipation:**
During the "Buy the Rumor" phase, investors drive prices up based on positive expectations. When the event finally happens, the market has already priced in those expectations, reducing the potential for further appreciation.

**- Profit Taking:**
Investors who bought during the speculation period seize the moment when the news is released to sell and lock in accumulated profits.

**- Post-Event Disillusionment:**
Often, the events do not meet the optimistic expectations, leading to a natural market correction, especially when the reality of the event’s impact is not as positive as anticipated.

**- Psychosocial Effect:**
The perception that “everyone is selling” can trigger mass sell-offs, amplifying the price drop.

**- Liquidation of Leveraged and Impulsive Traders:**
One of the most critical factors in the "Sell the News" phenomenon is the liquidation of leveraged positions. Investors who use leverage, in an attempt to maximize profits during the "Buy the Rumor" phase, may end up being forced to liquidate their positions when prices begin to fall after the event. This process can generate even more selling pressure, worsening the price drop. Furthermore, investors who made imprudent decisions, based on overly optimistic expectations or speculation, may be forced to close their positions, contributing to market volatility and accelerating the price decline. Leverage, when misused, can amplify losses during corrections, especially after significant events that fail to meet market expectations.

![](https://m.stacker.news/64164)


Read more at: https://bitcoincounterflow.com/the-psychology-behind-buy-the-rumor-and-sell-the-news-events-in-bitcoin-price

🚨 📉 Do you know what is the Event Sell The News?

![](https://m.stacker.news/63978)

The price has been rising strongly and consistently, with virtually no corrections.  

This raises some concerns, as we do *not* want an explosive rally like the one in the last cycle.  

On the other hand, the leverage levels between Longs and Shorts in the Futures Market are well-balanced, which is a positive and healthy sign.  

The coming months are shaping up to be very interesting. Remember to manage your risks carefully to avoid financial ruin.  

*In calm seas, every sailor thinks they’re a skilled navigator. Don’t be fooled.*  

**Stay Humble and Stack Sats**  


📈 Post-Halving Supply Shock?

![](https://m.stacker.news/63787)

On the chart, green points indicate moments when Bitcoin’s funding rate ended the day below -0.001% on major exchanges, suggesting good buying opportunities during the bull run when most of the market was predicting a price drop.

Red points indicate moments when Bitcoin’s funding rate ended the day above 0.075%, suggesting opportunities to take partial profits, taking advantage of the market’s excessive enthusiasm in predicting a price increase.

https://bitcoincounterflow.com/bitcoin-counterflow-strategy/#

The Smartest Bitcoin Model/Strategy

Lump Sum or DCA for the next 10 years?


![](https://m.stacker.news/63523)

https://bitcoincounterflow.com/bitcoin-retirement-calculator/