Market

Bitcoin’s FOMO Strategy: The Key to Regaining Previous All-Time High!

Bitcoin’s break in psychological resistance at 55,000 on Friday (October 8th) has led many investors to believe that Bitcoin will soon return to its previous ATH.

However, this is not yet possible. In the past 24 hours, Bitcoin hit an intraday high of $ 57,890 before falling back to $ 56,500 and trading at $ 57,456 at press time.

Bitcoin price chart | Source: Tradingview

Well, this isn’t a worrying sign as Bitcoin is still at a high price. However, if bullish momentum is to be maintained over the long term, the entire crypto market as a whole may lack the presence of another bullish catalyst.

Bitcoin needs support from private investors

Source: Glassnode

Although Bitcoin is currently very close to ATH, on-chain data shows that retail investors are still showing no signs of FOMO. While these buyers do not create long-term market structure, they are important in creating rallies against key levels of resistance.

The number of addresses receiving Bitcoin is still well below the annual average. In addition, the number of transactions is below the 2020 average.

These records are obtained from successful on-chain transactions, with the number / addresses of the transactions currently at the same level as when Bitcoin was valued at $ 40,000.

Source: Glassnode

When analyzing the net trading volume of exchanges, there appears to be a neutrality between inflows and outflows. This means that there is a lot of strong buying activity going on for Bitcoin.

It can be argued that long-term owners have driven the price above $ 42,000 in the past few weeks and eventually to $ 50,000. However, in order for Bitcoin to continue breaking resistance levels, FOMO is required from new retail investors.

Source: Glassnode

Is Bitcoin facing another short-term correction?

More recently, Bitcoin appears to be pulling out of the strong supply zone it set up in May 2021.

Source: trade view

As can be seen from the graph, the highlighted red zone could be a strong sell zone for investors who bought prior to the May 2021 corrections and they could be looking for some drawing capital.

Once their contracts are closed they may try to get back into the market at a lower range and the market is likely to see another correction after rising 30% in October.

Overall, Bitcoin’s credentials remain strong and there is no imminent risk of invalidating immediate support. However, one more phase of the market will be essential if it is to surpass $ 64,000 in the next few weeks.

Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews

Teacher

According to AMBCcrypto

Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page

CoinX

Recent Posts

Bitcoin Spot ETF Outflows Reach Second Highest in History

Bitcoin Spot ETF Outflows hit $541M on November 4, the second-highest single-day outflow in history.…

3 hours ago

PropiChain’s Token Presale Turns Heads as the First DeFi Platform to Merge NFTs with AI 

The hype around PropiChain’s token presale is due to its innovative integration of NFTs and…

6 hours ago

UK Pension Fund Cartwright Encourages 3% Allocation to Bitcoin Investment

UK pension fund Cartwright advised the country's first defined benefit pension fund to allocate 3%…

8 hours ago

Crypto PAC Fairshake Continues to Boost 2026 Election With Support from a16z

a16z and Coinbase have pledged substantial funds to crypto PAC Fairshake, aiming to support crypto-friendly…

9 hours ago

Bitcoin, Ethereum, And Solana Lead Crypto Market, But Not For Long With New AI Altcoin With 30,000% Potential, Expert Says

Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) dominate the crypto market, but experts warn that…

12 hours ago

Dogecoin Price Prediction: Will DOGE Ever Hit $0.7 Again? Why ETFSwap (ETFS) Is The Best Alternative For 100x Gains

Discover the future as the Dogecoin price aims for a $0.7 comeback and discover why…

15 hours ago

This website uses cookies.