An analyst’s opinion: Bitcoin’s next upward trend will be based on fear and doubt
While the FTX collapse crisis created widespread fear in the market and accelerated the investor exit process, a well-known analyst claims that traders’ skepticism about the beginning of Bitcoin’s uptrend is the trigger that will end the bear market. gave
To Report Cryptocurrency analyst Daily Hodel, aka Rekt Capital, has warned his more than 330,000 Twitter followers that any firm belief in Bitcoin’s continued downtrend may cause them to miss the next big uptrend. to lose
People doubting whether Bitcoin will experience another bull market is exactly what is needed to make it happen.
Bitcoin bull markets are built on FOMO (fear of missing out).
For fomo to turn into an uptrend, you have to feel like you’ve missed an opportunity.
And a firm belief in the continuation of the downward trend makes you feel left behind.
Read more: How to get rid of FOMO and stick to your strategy?
Then, this analyst examines the psychological price ranges. He used June’s highs and lows as an example, pointing out that the June price floor of Bitcoin now acts as a resistance level.
Bitcoin price floors in June were once a support line
Currently, Bitcoin’s June low serves as resistance
Psychologically, people were willing to buy at the June lows
But now people are more willing to sell at the June low
How things have changed in a few months.
Racket advises his followers to be patient. Historically, it takes several months for a price floor to stabilize in bear markets for Bitcoin, he says.
It usually takes months for Bitcoin to bottom out in bear markets before a major uptrend begins.
Surrendering at the absolute price floor of a period is a debate.
The long-term price stabilization that follows is another matter.
To illustrate his views on bear market bottoms, capitulation and consolidation cycles, the trader shares a long-term Bitcoin price chart he published earlier in June.
Read more: market cycle; Everything you need to know about market phases
Based on the three macro triangles formed, Bitcoin is now in the phase of a rapid downtrend and is trying to form a price floor for a period.
At the time of writing, Bitcoin is trading at $16,720, down about 3.6% from last week, which is more than 75.7% lower than the highest price recorded on November 10, 2021.