Bitcoin has climbed above $71,000, boasting a market cap exceeding $1.4 trillion. The cryptocurrency shows promise for more gains, fueled by low trader anxiety (FOMO) and a steady RSI around 60.
A decrease in BTC exchange netflow indicates fewer sales pressures as investors opt for self-custody, signaling optimism in the market’s direction.
Reasons Bitcoin’s Bull Run Is Yet to Escalate
Bitcoin (BTC) has recently seen impressive gains, surpassing $71,000 in price and achieving a market capitalization over $1.4 trillion according to CoinGecko. Over the past month, BTC has risen by 14% and has soared by 165% year-over-year. Despite these gains, several indicators suggest that a further rally could be on the horizon.
BTC Price, Source: CoinGecko
One significant factor is the absence of Fear of Missing Out (FOMO) among traders. Market intelligence from Santiment indicates that current market sentiment lacks the intense euphoria seen during previous peak periods. FOMO typically drives investors to enter markets impulsively, driven more by emotion than rational analysis.
FOMO in the context of cryptocurrency refers to the fear of missing out on potential gains, prompting investors to make hasty decisions without proper research or strategy. This behavior often leads to inflated prices and sets the stage for significant market corrections.
Historically, FOMO has coincided with market peaks followed by sharp price declines. The current subdued FOMO levels may suggest that BTC’s bull run has not yet reached its peak potential, as investors are not rushing in en masse as they have during previous surges.
Factors Supporting Bitcoin’s Potential Uptrend
Bitcoin (BTC) is showing signs of potential continuation in its upward trajectory, bolstered by several key metrics. One such metric is the Relative Strength Index (RSI), a tool used in technical analysis to gauge whether an asset is overbought or oversold. The RSI ranges from 0 to 100, with readings above 70 indicating potential overbought conditions. Currently, BTC’s RSI stands at 60, having crossed the critical 70 level only four times in the past month, suggesting a balanced market sentiment.
BTC RSI, Source: Crypto Waves
Additionally, Bitcoin exchange netflow data, as reported by CryptoQuant, reveals a predominantly negative trend over the last week. This negative netflow indicates that more BTC is moving out of centralized exchanges and into self-custody methods. This shift is often interpreted as bullish because it reduces immediate selling pressure on the market, potentially supporting higher prices.
BTC Exchange Netflow, Source: CryptoQuant
These factors collectively indicate a supportive environment for Bitcoin’s price, suggesting that the current uptrend may have further room to grow as market conditions remain favorable.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
Join Cryptos Headlines Community
Follow Cryptos Headlines on Google News
