Unveiling the 'Monday Curse'! Is There a Pattern to Market Shifts?
Have you noticed that every Monday, the cryptocurrency market experiences drastic changes? This is not a coincidence, but rather something that can be traced!
Core Logic:
If the market is booming and in the green over the weekend, Monday often brings a correction. The reason is simple: traders take profits over the weekend and are eager to close positions to avoid risk on Monday, causing prices to naturally dip. This is a manifestation of 'mean reversion', where excessive increases cool off naturally.
And vice versa:
If the weekend is flat or slightly down, the probability of a rebound on Monday increases, as traders re-enter the market, pushing prices higher.
How to seize the opportunity?
By observing the closing sentiment over the weekend, one can predict Monday's trends in advance and grasp the tone for the week. Clever traders do not chase highs or panic sell; they understand the rhythm and plan ahead!