Retail investors will definitely see what happens with the news on social media especially in FOMO is likely to affect their emotions after seeing some fud coming made by the whales to manipulate prices to buy at low prices while retailers sell in urgency and panic.
They believe the halving event will go up because they see the previous history although there is no strong foundation what happens in the future will be the same or not, but still many people believe including myself with the next halving will trigger the bullish coming.
Regarding negative or positive market trends, it will always come, we must be wise to draw conclusions, especially when taking decent profits.
that's why Potential buyers should be wary of something like this and Traditional investors still view bitcoin as opaque and highly speculative with the potential for collapse.
Yes. It's true, indirectly many holders can't stand it and get emotional so they easily give up some of their BTC holdings.