In short, if you don't have brain to analyze and uncapable to have emotion while trading, then psychology would probably be illusion for you. Because guess what? Emotion is everywhere in trading especially in crypto market. Every spike in volatility going higher or lower is just emotions and convictions of people trying to buy at low price and sell at higher price. The way you are thinking is fact that Psychology is real. In trading where it's a battle of metal resilience, it is important hat you have a strong sense of psychology in terms of winning and losing.
Psychology is emotional and every traders has an emotions therefore if you do not know the trading psychology, you are not going to be a good trader. The market has it own psychology that you have to know so you are not to sell when you are meant to be hodling. You do not have to panic despite if you see the market falling because they market will recover. When you see profits, you are meant to take the profits and keep it in stablecoin but if you do not take the profits, you might lose it as profits that you have not taken is not yet a profit. You have to believe in yourself that you can win when trading so that the decision you take next will be good ones that can make you win and not to be trading under pressure that can make you to make the wrong moves that will make you to lose the trade.