Krutika Adani
Buying BTC at its peak due to FOMO can lead to being caught in a bull trap, forcing investors to hold or sell at a loss.
The MVRV (Market Value to Realized Value) ratio is key. High MVRV indicates unrealized profits and a potential sell-off, while low MVRV suggests a market bottom.
Santiment advises DCA at low MVRV zones. This reduces risk, ensures lower buying costs, and safeguards against volatile market corrections.
FOMO buying at all-time highs creates bull traps, as emotional reactions push prices unsustainably high before corrections.
Focus on market indicators like MVRV and adopt disciplined DCA strategies to navigate volatility and avoid bull traps.