Part 7/9:
Moreover, the psychological dimension of the market is underscored. Market sentiment can often act as a self-fulfilling prophecy; expectant sellers fearing a downward trend can inadvertently create a bearish atmosphere. This psychological pressure can move prices downward even if the fundamentals don’t warrant it. However, the discussion highlights that institutional players may act counter to the herd, engaging in accumulation during dips rather than panicking, thus potentially creating a strong price floor over time.