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The majority of Bitcoin’s market movement this week has been dominated by crowd opinion. HODLers, as well as whales, retail merchants, and organisations, have played important roles in the story. The price pattern was primarily dominated by institutional buying and changes in HODLer composition for the majority of the season. However, after the altcoin surge, Bitcoin reclaimed the $60000 mark, and the reasons influencing the price rally have shifted.
Fear and greed continue to have a significant impact on the asset’s valuation and have an important part in deciding where the price of Bitcoin and Ethereum will go next. Furthermore, BitMEX’s eternal funding pace and Twitter sentiment foreshadowed the asset’s price drop and rebound over the last two weeks.
BitMEX’s permanent contract financing prices have helped decide the course of upcoming pattern reversals in Bitcoin, and this remains true even at the coin’s present trading cycle price stage.
Currently, investor morale has reverted to a pessimistic low, which is expected to have an effect on the price of Bitcoin. After falling below $60000, the price can experience a few more corrections before the period concludes. This is also valid for top altcoin Ethereum. In the case of Ethereum, the alt rally is currently being led by altcoins and DeFi tokens, which is critical to Ethereum’s price and trader sentiment because investment inflow is dependent on it. Based on the following Santiment map, it is possible that both Bitcoin and Ethereum will reach a local low this week, with the atmosphere set to panic.
However, as traders remember the halving ROI and how much the market has rallied since the halving, the new price range for Bitcoin seems bullish. However, in the past, it has had less of an impact on the market trend. The price is still up 578 percent after the halving, and the BTC halving candles provide insight to HODLers who purchased the post-halving dip.
Though the above map does not depict the whole scenario, since there was a setback and a partial financial collapse following COVID, the candles are likely to provide insights to HODLers hoping to HODL to $100000 or higher goals in the long run. However, the perpetual funding pace, fear and greed index, and investor sentiment on social media all point to an impending decline in Bitcoin’s price.