It is the psychology but more importantly it is the emotions that get the best of us. This happens in every facet of life and trading is no different. When we lose we want to get out to stop the pain and when we win we want to book our profits. You must get a better mental state if wanting to achieve big things at trading cryptos imo!
Good observation. The basic psychology of traders are buying when the price is rising and selling when the price is falling. The point that can be noted here is emotion and panic. Most of the traders are emotionally fool. Another mentality of traders is that they want the return as early as possible and quite unable to wait.