Dosing the Fire
Updated
Bitcoin has been on the verge of some hard up moves and luckily has come back from the brink. Only problem is that moves are suddenly perceived to be the end of the world or “going to the moon” and this makes targets go thicker. As you know, Bitcoin has spent little time above where we turned. That combined with sentiment, that went into the extremes again, could only lead to burned fingers.
Funny how you would expect that the sentiment indicator would lose volatility over time, as the sky has not fallen and we have not touched down on the moon, if the traders in the space would largely stay the same. This is not the case, so Money Man assumes that BTC is plagued by very emotional traders or traders who are trading on tilt or there is a real turnover in traders. Whichever one or combination, this emotionality fuels the market and only needs a spark to light into a fire.
Hopefully, we soon see some clear shorter-term pattern develop to prove that the market is not getting irrational.
Conclusion: If we recover from here to pass 13 900, we will be in for this adrenaline territory, but if we were to respect the trendlines we will spend quite a bit of time inside it. Money Man is anticipating this as the current decision levels and the trendlines do not line up in a meaningful manner. Do not be fooled into thinking that there will not be opportunities as the trend lines cover a big percentage. Very important to me: Please leave a like if you appreciate the effort, please comment to develop this further and please follow if you think this might lead to somewhere that you would like to know about.
Funny how you would expect that the sentiment indicator would lose volatility over time, as the sky has not fallen and we have not touched down on the moon, if the traders in the space would largely stay the same. This is not the case, so Money Man assumes that BTC is plagued by very emotional traders or traders who are trading on tilt or there is a real turnover in traders. Whichever one or combination, this emotionality fuels the market and only needs a spark to light into a fire.
Hopefully, we soon see some clear shorter-term pattern develop to prove that the market is not getting irrational.
Conclusion: If we recover from here to pass 13 900, we will be in for this adrenaline territory, but if we were to respect the trendlines we will spend quite a bit of time inside it. Money Man is anticipating this as the current decision levels and the trendlines do not line up in a meaningful manner. Do not be fooled into thinking that there will not be opportunities as the trend lines cover a big percentage. Very important to me: Please leave a like if you appreciate the effort, please comment to develop this further and please follow if you think this might lead to somewhere that you would like to know about.
Note
Previous BTC contribution 
Note
Related ETH contribution 
Note
Next BTC contribution 
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.