A bull market requires upward movement to sustain itself; this is a simple logical chain. Once the market starts to rise, FOMO traders will flood in, and their buying pushes prices higher, attracting more people to follow suit. Conversely, the logic of a bear market is just as ruthless. Once panic sets in, FUD spreads like a virus. The more people become bearish, the greater the selling pressure, and the deeper prices fall, creating an even more intense atmosphere of panic. This is essentially a self-reinforcing mechanism of market sentiment—rising prices attract more rises, and falling prices intensify further declines. Whether driven by greed or fear, these emotions resonate within the crowd, ultimately pushing the market to extremes. That’s why understanding market psychology is more crucial than simply analyzing technical indicators.