While the ETF expectation for Bitcoin contributed to the price increase by 40%, we observe that retail investors are not convinced of this rally yet.
Previous peaks in Bitcoin came when investors were buying unconsciously with the smell of losing opportunity (FOMO). Because such a cycle is needed for large whales to unload the goods they have collected.
When we look at the Google Trends data, we observe that the interest of new investors is low despite the sharp rise in price. This chart gives a strong signal that the uptrend in Bitcoin may continue. Because with yesterday’s weekly close, Bitcoin managed to rise above the previous peak and made a higher peak.
Considering that the peaks come when the fear of losing the opportunity peaks, these data suggest that the peak may not be seen yet. Despite making a higher weekly top, FOMO is not at the desired levels. The price may need to reach new highs for the mainstream media and investors to regain interest in Bitcoin and for whales to dump the merchandise.
This approach does not mean that the price will continue to rise or make intermediate corrections. At this point, the direction of the trend should be determined and the transaction should be entered according to whether the peaks and bottoms formed at this point are high or low in the previous ones. Although the weekly close was above the previous high, giving a bullish signal, we see negative divergences in the lower timeframes in the RSI. This data reminds us that we need to be prepared for the short-term declines.
Nobody knows the short-term direction in Bitcoin, as long as you have enough money to buy as it falls and enough to sell as it rises, you can stay in the game.
*Not Investment Advice.