Behavioral Principle
Anchoring Bias
Traders can give disproportionate weight to a vivid recent event or reference point, causing subsequent market information to be judged relative to that anchor instead of evaluated on its own merits.
Articles studying this principle
Bitcoin’s $77.3K Breakdown: The Level Repeated, the Conditions Didn’t
Bitcoin broke $77.3K after holding the same zone the day before, exposing the danger of trusting a level without checking what changed underneath it.
The Shock Anchor: Why Bitcoin Traders Keep Trading the Crash After It Ends
Bitcoin’s violent selloff may be over, but traders can remain psychologically anchored to the shock candle long after price enters a new phase. IM7 examines why recent fear can distort how every bounce and consolidation is interpreted.