Bitcoin Traders are 'Greedy' as BTC/USD Rallied above $41.5k Last Week
Crypto is a unique asset class.
Besides volatility and dizzying price fluctuation, crypto and Bitcoin are massively influenced by hype.
And 'hype' can be a primary source of market volatility.
For this reason, market sentiment is a critical metric baked into many analysts' strategies. It is easy to pick out when Bitcoin prices are trending simply by browsing through crypto Twitter or Reddit.
Proclamations of Bitcoin reaching $1 million in weeks, folks purchasing Lambos and yachts, is the order of the day.
It happens because traders are usually greedy, optimistic, and yearning for more, indicating a firm, upward trending market.
The opposite happens when the market is petrified. Suppressed talks of Bitcoin cratering to zero, or worse, getting banned, and critics finding a reason to reinforce their assertion dominate headlines and forums.
We saw greedy bulls in Q1 2021 when Bitcoin peaked at $64.5k while the markets were fearful when, in May, Bitcoin collapsed to below $30k.
BTC/USD prices have been suppressed since then.
However, gains above the stubborn $40k levels last week, as per sentiment trackers, made Bitcoin traders greedy.
It is not yet at hysteria levels where traders jump in without doing due diligence. However, it is highly building up more so if prices break above $42k towards $50k.
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