Bitcoin May Look Like a “Rocket Ship,” But Investor Euphoria Remains a Problem
Bitcoin (BTC) has been caught inside the throes of immense bull-favoring volatility over the previous a number of weeks, which has allowed the cryptocurrency to place vital distance between its current lows of $6,400 and its present value of $9,500.
This upwards momentum has led the crypto’s market construction to develop more and more bullish, which is main some analysts and buyers to develop euphoric, and even to outline the crypto’s macro technical scenario as that of a “rocket ship.”
It is essential to notice that this euphoria, nevertheless, has led different analysts to develop weary on the cryptocurrency, as occasions of nice optimism amongst buyers have been traditionally adopted by notable draw back.
Bitcoin Sets Fresh 2020 Highs as Investors Eye a Move into the Five-Figure Region
At the time of writing, Bitcoin is buying and selling up over 2% at its present value of $9,500, which marks a notable climb from every day lows of simply over $9,000 that have been briefly tapped earlier right now when the crypto incurred immense volatility.
This sharp intraday selloff proved to be fleeting, nevertheless, because it was adopted by a vital inflow of shopping for strain that catalyzed the upwards motion that allowed BTC to set recent 2020 highs right now at $9,550.
Because the crypto has not but confronted any sharp decline from these lately established highs and is simply sooner or later away from its month-to-month shut, its January candle is wanting like a “rocket ship” – within the phrases of well-liked crypto analyst MoonOverlord.
“Daily BTC candle looks like a literal rocketship.”
Daily $BTC candle seems to be like a literal rocketship
— moon (@MoonOverlord) January 30, 2020
Will Investor Euphoria Catalyze a Massive Downwards Movement?
Bitcoin remains to be buying and selling considerably under its 2019 highs of $13,800, and loads of analysts have famous that there’s nonetheless a sturdy risk that the crypto sees some additional draw back earlier than it positive aspects a agency foothold inside the coveted 5 determine value area.
Teddy – a well-respected crypto analyst on Twitter – defined that the euphoria amongst BTC buyers at present second may spell hassle for the place it tendencies subsequent.
“My only concern here is euphoria, I hate euphoria… Historically when people are: – Over the moon – Making too much money – Predicting insane targets… Sentiment gets murdered with a nasty huge red candle, making everyone contemplate their own existence and IQ,” he cautiously famous.
My solely concern right here is euphoria, I hate euphoria 🙈
Historically when persons are:
– Over the moon
– Making an excessive amount of cash
– Predicting insane targets
— Teddy (@TeddyCleps) January 30, 2020
How the markets development within the coming few days and weeks ought to present some perception into simply how vital the 2020 Bitcoin rally will likely be for the crypto’s future value motion.
Featured picture from Shutterstock.