I don't do much trading in crypto, because I'm not good at it, but I do follow crypto prices day and night and I kind of have some indicators that work well and always tell me the truth about the direction BTC and other types of assets might head to. You can't rely 100% on them but they're quite useful imo.
The two that I want to point at are the RSI and the fear and greed index. I can't seem to be able to open the first one on tradingview, but the fear and greed index is definitely pointing at the market's sentiment to be on the extreme greed territory right now. What does that mean?
From what I noticed, and am not the only one keeping my eyes on this index, usually extreme greed indicators precede some sort of pullbacks/corrections, while extreme fear is definitely a buying opportunity indicator. It's all that simple that I even ask myself why the hell am I not trading based on these simple to use indicators.
Don't know if you have noticed it, but the BTC's price is already under $15,000, after getting close to $16,000 recently and my lucky guess is that it will dump to as low as $14,000 or even a bit under. Does that mean that the bull market is over? Hell no, we just started the uptrend, but it's obviously BTC won't moon in days or weeks once it starts its bull market, and it needs some resting periods over time.
It showed already that it doesn't care too much who the president of the US is, but it still needed to correct and my take is that it will take a few days or weeks till this correction will end and the extreme greed will cool down. Money have definitely entered the market big time and it's probably clear by now for most of you that financial institutions are leading this rally. It was about time, right.
If you check the google trends for the search term bitcoin, you'll see that despite the recent strong rallies, the chart has barely moved, leading towards the judgment that plebs are not in control anymore, and that this is nothing similar with 2017 bull market when retail investors drove the prices up, worth mentioning being the ICO boom which in my opinion was a strong catalyst for many shitcoins 20-30x in one year or less during those times.
2020 is the year when the long awaited financial institutions such as Grayscale, PayPal and others, have taken control over the Bitcoin boat and they're definitely not in for a quick buck profit on Bitoin. Those guys know how to do money, have for sure done their research and are anticipating large revenues for them and their clients investments.
That doesn't mean that plebs aren't buying BTC as well, according to this report only in the US the number of crypto ATMs have doubled from 2019, with a total of 9242 ATMs at the moment. Canada is also a world top five country by the number of ATMs available in the country, and even my modest home country Romania has more than doubled its total of crypto ATMs in the last year.
Bottom line, my take is that according to the fear and greed index, which currently screams extreme greed, we will see a pullback for the price of BTC short term, and it was kind of expected to happen after these strong rallies, but it will not last long, so be careful with your trades that you're not left on the sidelines/stablecoins.
Have a great day folks and see you to the next one.
Thanks for attention,
Adrian
Initially Posted Using LeoFinance Beta
