As discussed in the Lessons of Grade 2 of the Primary SOC, three generations of millionaires have thus far been born in the Crypto Market:
• Bitcoin Millionaires (2009 – 2018)
• DeFi Millionaires (2019 – ongoing)
• NFT Millionaires (2021 – ongoing).
However, not everyone makes good financial fortunes from cryptocurrency investment. One cardinal reason why some people do not make good financial success is because of the lack of understanding of the Psychology of the Crypto Market.
In the Secondary SOC Module 3 of Grade 2, it was mentioned that Bitcoin Halving inbuilt technology has initiated a cyclical seasonal pattern in the Crypto Market, which EdaFace Academy refers to as the Crypto Cycle.
Approximately, every four years, the Crypto Cycle is repeated, forcing most of the cryptocurrencies in the Crypto Market to follow this rhythmic sequence. The fact is that each of these cycles moves like a wave, and you need to understand this wave pattern to correctly position yourself for profits in the market.
Lecture 1.0.0. The Wave Pattern of Cryptocurrency
The prices of all financial instruments including cryptocurrencies move in a spiral wave-like manner as follows:
• Ascent
This is when the price of the financial instrument such as a crypto starts to build up and gradually moves upwards, often in an undulating manner.
This price upward movement continues until it climbs to its maximum height, the Peak, before tumbling downwards.
• Descent
This is when the price begins to fall downwards. The price continues to fall until it reaches its Bottom.
• Sideways
Once it reaches its bottom, the price continues to swing sideways for some time; that is, price neither goes upwards nor downwards, bringing a lot of discouragement to the investors.
The sideways movement continues until a stimulus is introduced, which forces the price to start to go up again, marking the commencement of an Ascent Period of another wave.