Many people tend to fall into two common cognitive traps when analyzing Bitcoin trends.

The first is misreading chart patterns. Patterns like ascending wedges are inherently bearish signals. Once the price breaks below the lower support line, it indicates a trend reversal rather than a buying opportunity. The key here is to understand the logic— the direction of the pattern breakout determines the nature of the subsequent movement.

The more critical issue is that many analyses exaggerate the correlation between Bitcoin and US stocks. Indeed, their correlation is increasing, but this does not mean their volatility will align. A 10% drop in US stocks is considered a crash, while in the crypto space, the same period could see a decline of up to 30%. The reason behind this is that crypto assets inherently have a high Beta— they react more sensitively and extremely to market sentiment and capital flows. When liquidity suddenly tightens, BTC's decline often exceeds that of US stocks by several times. Using the relative stability of US stocks to infer BTC's resilience is logically flawed.