BTC - When Will The Overall Market Sentiment Become Bearish?
We have been in a bearish market for a month now and for crypto enthusiasts this is just another healthy correction before the price blasts past 20K and, once again, silencing all the haters. Other people are feeling smug or in despair because they knew Bitcoin would never end well!
Looking on Twitter, YouTube and Reddit, the overall market sentiment is definitely still bullish with 80% of people are saying they are either HODL'ing or buying. However, the majority of people that are selling are probably not shouting about it. Bitcoin has dropped 50% in the past month in the shape of the flag continuation pattern (ignoring the noise). The volume has generally been decreasing, which is required for the flag formation, and we have hit the 0.618 Fib retracement from the recent move. On top of all this, RSI, Stochastic RSI and MACD all point towards on oversold area. All of these technical indicators favour the bulls!
In a market that has become glamourised by its profit potential, it has become the go-to for everyday people to make some quick money. These are the weakest hands and they are most likely to fold. There has been a lot of talk about regulation by Korea, China, France and now a German Central Bank Director has called for International cooperation in regulating it. The pressure is heavy and the fact that the price is declining makes it twice as worse. In my eyes, these pieces alone aren't enough to make Bitcoin plummet however we look forward to what news lies ahead.
This bloodbath serves as a reminder that we are in an extremely volatile market and we should always have a plan for every trade we do! This becomes ever more important when we are on a winning streak and we get complacent. In some ways, Crypto is the best market to learn about trading strategy as it is as punishing as it is rewarding.
I am looking for the end of the retracement to be no further than the 0.618 level drawn from Aug 15, around the $8000 mark. I will set my buy orders around this mark and if we do find support here then my first target would be $20k. If it breaks down from here, I think the overall market sentiment will turn bearish and then I will only keep my core holdings. I think there will be many news outlets claiming this bubble has burst but I would advise everyone to look for the next buying opportunities! Out of all the bubbles in the past, I think this is most comparable to the Dot-Com bubble as these technologies have an application to the world that is open for anyone to build upon. I believe in any event, the blockchain technology will prevail.
Looking on Twitter, YouTube and Reddit, the overall market sentiment is definitely still bullish with 80% of people are saying they are either HODL'ing or buying. However, the majority of people that are selling are probably not shouting about it. Bitcoin has dropped 50% in the past month in the shape of the flag continuation pattern (ignoring the noise). The volume has generally been decreasing, which is required for the flag formation, and we have hit the 0.618 Fib retracement from the recent move. On top of all this, RSI, Stochastic RSI and MACD all point towards on oversold area. All of these technical indicators favour the bulls!
In a market that has become glamourised by its profit potential, it has become the go-to for everyday people to make some quick money. These are the weakest hands and they are most likely to fold. There has been a lot of talk about regulation by Korea, China, France and now a German Central Bank Director has called for International cooperation in regulating it. The pressure is heavy and the fact that the price is declining makes it twice as worse. In my eyes, these pieces alone aren't enough to make Bitcoin plummet however we look forward to what news lies ahead.
This bloodbath serves as a reminder that we are in an extremely volatile market and we should always have a plan for every trade we do! This becomes ever more important when we are on a winning streak and we get complacent. In some ways, Crypto is the best market to learn about trading strategy as it is as punishing as it is rewarding.
I am looking for the end of the retracement to be no further than the 0.618 level drawn from Aug 15, around the $8000 mark. I will set my buy orders around this mark and if we do find support here then my first target would be $20k. If it breaks down from here, I think the overall market sentiment will turn bearish and then I will only keep my core holdings. I think there will be many news outlets claiming this bubble has burst but I would advise everyone to look for the next buying opportunities! Out of all the bubbles in the past, I think this is most comparable to the Dot-Com bubble as these technologies have an application to the world that is open for anyone to build upon. I believe in any event, the blockchain technology will prevail.
