The Psychology of Bull Runs
Why People Buy High and Sell Low
Crypto bull runs feel exciting, chaotic, fast and full of opportunity. Prices explode, charts go vertical and every project seems destined for a 10x.
But if bull runs create wealth…
why do most people still lose money?
The answer is simple: human psychology works against us.
Today we break down why people buy high and sell low in bull markets, and how you can avoid falling into the same traps.
Bull Runs Aren’t About Logic. They’re About Emotion
If markets were logical, people would buy when prices are low and take profits when prices are high.
But bull runs create an emotional environment so strong that logic gets replaced by fear, excitement and social pressure. That emotion becomes stronger than any technical analysis or strategy.
Two emotions dominate every cycle:
Greed
Fear
Ironically, greed gets people to buy high.
And fear gets people to sell low.
Let’s break down how it happens.
1. Greed Hits First: “I Don’t Want to Miss This”
Bull runs begin quietly. Only a few early believers accumulate. There’s skepticism, boredom and doubt.
Then suddenly something flips.
Bitcoin breaks out.
ETH starts moving.
Solana doubles.
Your timeline fills with profits.
People see others making money — and panic that they’re missing out.
This is FOMO (Fear Of Missing Out), and it’s extremely powerful.
It triggers thoughts like:
“I should have bought last week.”
“Everyone else is getting rich.”
“It’s going up forever.”
“This is my one chance.”
Instead of buying early (when prices are reasonable), people pile in after the big move when the risk is highest and the upside is lowest.
That’s the first trap.
2. Confirmation Bias: “This Time It’s Different”
Once in a position, investors look only for information that supports their decision.
Articles, influencers, charts — everything suddenly confirms that the bull run will last forever.
“ETH to $20K confirmed.”
“SOL is the next Amazon.”
“This coin can’t go down.”
People ignore risk.
They ignore volatility.
They ignore history.
Every cycle looks new but behaves exactly like the last one.
3. Herd Mentality: People Follow the Crowd
Humans are wired to move with the group. In bull markets, the crowd becomes louder and louder. When everyone around you is buying, laughing, celebrating and posting gains, selling feels insane.
Nobody wants to be the only one taking profits when the entire market is euphoric.
Herd mentality amplifies risk-taking. The larger the crowd, the harder it is to stay rational.
This leads to the second problem:
People buy coins they don’t understand, with money they can’t afford to lose.
4. Euphoria: The Peak Nobody Recognizes
At the height of the bull run, something strange happens.
The same people who were scared to buy earlier suddenly become 100 percent convinced that prices will never fall again.
This is the psychological peak.
Signs of euphoria include:
Everyone posting profits
Friends and coworkers asking what to buy
New investors bragging about gains
People taking loans to invest
Influencers predicting impossible targets
Meme coins going 100x daily
“Crypto is easy, why didn’t I start earlier?”
This is the exact moment professionals start selling: silently.
Retail, meanwhile, keeps buying aggressively.
Because the market feels safe when it’s at its most dangerous.
5. Fear Takes Over: “I Can’t Lose Everything”
Eventually, momentum slows.
A big correction hits.
A few red candles appear.
Retail investors aren’t used to volatility, so they panic.
Fear/ FUD (Fear, Uncertainty, Doubt) now replaces greed.
Thoughts shift from “I’m going to be rich” to:
“What if it goes to zero?”
“I should have sold earlier.”
“The market is crashing.”
“I need to get out.”
People who bought at the top begin selling during dips — the same dips long-term investors buy.
This is the “sell low” moment.
Not because investors are dumb, but because fear becomes stronger than rational thinking.
6. Regret and Avoidance: The Final Stage
After selling low, investors watch the market recover and feel regret.
The cycle repeats:
Buy high
Sell low
Regret
Re-enter late
This emotional loop destroys more crypto portfolios than any rug pull, hack or bad investment.
It is 100 percent psychological.
How to Protect Yourself From These Emotional Traps
1. Have a plan BEFORE the bull run, not during it
Write down your strategy when emotions are calm.
2. Set selling targets
Take profits gradually, not all at once, not never.
3. Don’t chase every pump
If something already went up 5x, you are not early.
4. Understand every coin you buy
If you don’t know what it does, you’re gambling.
5. Accept that corrections are normal
Even in bull runs, prices drop 20 to 40 percent often.
6. Keep most of your portfolio in strong assets
BTC, BTC and BTC. not random gamble coins.
7. Never invest money you can’t afford to lose
Fear comes from overexposure.
Final Thoughts
Bull runs don’t destroy people because of market mechanics. They destroy people because of human behavior.
Those who stay rational while everyone else loses their minds are the ones who walk away with real profits. The market doesn’t beat people. People beat themselves.
You might think you are different but guess what? You’re not!
Master your emotions, and you’ll stop buying high and selling low.
Master your strategy, and you’ll survive every cycle.
Not Financial Advice.