Bitcoin Why is Everybody Extremely Fearful?
It's been clear we've been in a slow steady downtrend. We've been producing lower highs, and slightly lower lows which of course isn't a good sign for positive price action. To be honest we will be at these levels for weeks to come or even another couple months. This entire market has had a serious cooldown.
The charts indicate we're pretty much on a steady path to make candle closes below the crucial support level of $30,000. It's been very remarkable that Bitcoin has been holding strong above $30,000 despite the Tsunami of fear, uncertainty, and doubt that continues to plague the market. Originally I said we were overly bearish but chart doesn't lie.
The good news is that Bitcoin has been extremely fearful for over a month on the Fear & Greed Index. Eventually when sentiment is so fearful we eventually slowly work our way back to being greedy again overtime. The last time we we're this fearful was during March 2020 Global COVID-19 shutdown. The reasons then were quite obvious because nobody knew outcomes of the shutdown as then entire globe went into hysteria.
The reasons why people are extremely fearful of Bitcoin today is pretty confusing: Tesla no longer accepting Bitcoin, Elon Musk's troll tweets, clean energy concerns, China's renewed crypto crackdowns, and the exodus of miners out of China relocating to more crypto friendly mining jurisdictions around the world.... Are these reasons to be extremely fearful? In my opinion no.... This is all good for the Bitcoin network long-term. But cryptocurrency is hyper volatile which is another way to say hyper emotional.
It's difficult to say were we go from here. The best case scenario is we continue to hold above $30,000 and move sideways for a while until the bulls come back. Worse case scenario is we slowly continue down on this descending wedge into the mid $20,000 range and $30k becomes resistance. There still may be more maximum pain and I know it hurts to see.
You can only use so much Technical Analysis before you have to balance it with the fundamentals. Market sentiment and buyer / seller emotion is what ultimately drives price. The charts indicate down in the short term but the long term fundamentals and macro environment for Bitcoin point up. Especially as Governments continue to print historic record trillion dollar packages and stimuluses around the world. Hyperinflation is coming if its not already here.
Like I said before we are going to have a rough choppy summer until we can have a better overall market sentiment. We will get through this cloudy period in cryptocurrency. There's way too much innovation and adoption not to be bullish long term. Bitcoin will be a multi-trillion dollar asset.
As always much peace, love, health, and wealth. Bitcoin = Freedom.
The charts indicate we're pretty much on a steady path to make candle closes below the crucial support level of $30,000. It's been very remarkable that Bitcoin has been holding strong above $30,000 despite the Tsunami of fear, uncertainty, and doubt that continues to plague the market. Originally I said we were overly bearish but chart doesn't lie.
The good news is that Bitcoin has been extremely fearful for over a month on the Fear & Greed Index. Eventually when sentiment is so fearful we eventually slowly work our way back to being greedy again overtime. The last time we we're this fearful was during March 2020 Global COVID-19 shutdown. The reasons then were quite obvious because nobody knew outcomes of the shutdown as then entire globe went into hysteria.
The reasons why people are extremely fearful of Bitcoin today is pretty confusing: Tesla no longer accepting Bitcoin, Elon Musk's troll tweets, clean energy concerns, China's renewed crypto crackdowns, and the exodus of miners out of China relocating to more crypto friendly mining jurisdictions around the world.... Are these reasons to be extremely fearful? In my opinion no.... This is all good for the Bitcoin network long-term. But cryptocurrency is hyper volatile which is another way to say hyper emotional.
It's difficult to say were we go from here. The best case scenario is we continue to hold above $30,000 and move sideways for a while until the bulls come back. Worse case scenario is we slowly continue down on this descending wedge into the mid $20,000 range and $30k becomes resistance. There still may be more maximum pain and I know it hurts to see.
You can only use so much Technical Analysis before you have to balance it with the fundamentals. Market sentiment and buyer / seller emotion is what ultimately drives price. The charts indicate down in the short term but the long term fundamentals and macro environment for Bitcoin point up. Especially as Governments continue to print historic record trillion dollar packages and stimuluses around the world. Hyperinflation is coming if its not already here.
Like I said before we are going to have a rough choppy summer until we can have a better overall market sentiment. We will get through this cloudy period in cryptocurrency. There's way too much innovation and adoption not to be bullish long term. Bitcoin will be a multi-trillion dollar asset.
As always much peace, love, health, and wealth. Bitcoin = Freedom.
Comment:
Fear and Greed Index: alternative.me/crypt...ear-and-greed-index/
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Sotheby's accepts Bitcoin for 101 Carat diamond $10 -$15 Million dollars: www.forbes.com/sites...-d-flawless-diamond/