According to Compounding Quality on Twitter, denial can significantly impair trading performance as traders ignore negative realities, saying 'It's not that bad' or 'It can't be true.' This psychological tendency leads to delayed reactions and poor decision-making, which is especially critical in fast-moving cryptocurrency markets where rapid, fact-based responses are essential for managing volatility and risk (Source: @QCompounding, May 20, 2025). Recognizing and overcoming denial is key to executing timely trades and protecting capital during market downturns.