Unlocking BTC's Pandora

Crypto Compass 66

“Emerging markets serve as a daily, constant reminder that we won’t win unless everybody wins. We’re looking at the challenges in these markets and making sure that we stay close to them to understand what those challenges are.” - Michael Miebach, Mastercard CEO

• The markets have created a large wave of FOMO in the last few days, attracting massive buying volume. As BTC dominance surpassed 52%, the token drew half of the volume, and as a result, the price soared beyond $35k, aided by an overbought RSI.

• Nonetheless, traders who bought on FOMO looked to be 'panic selling' today, as we saw a minor price retracement. However, the bull continued to push the price up, and it is now at $34.4k.

Figure 1: BTC's price evolution with Cipher B, RSI and ATR indicators.

• BTC often leads the group in the early stages of a bull market, and its dominance grows. With the $31K level now operating as a new support level and a strong positive momentum, BTC’s next objective is $36k, with $40k in sight, given the increased volatility.

• The bulls are riding the hopium rise as BTC spot ETF rumours and ticker code teasers flood the market. Furthermore, an increasing number of bullish engulfing candles in a blue chip cryptocurrency like BTC indicates a buy signal.

Figure 2: BTC’s Price Momentum Evolution