Whatever ground you take technical or fundamental Financial Market primarily runs on sentiments
Crypto trading is getting attention and gaining popularity since its inception. There are many factors to consider while picking up your trades and assets. The first thing to understand is that Crypto trading is higher in control of the large whales. Whales are big players who hold large positions in digital assets and can influence the direction of the prices.
In recent times, crypto traders sold out of fear during a pullback.
In the above Tweet, the movement of Bitcoin price is decoded in terms of two sentiment indicators namely “Fear, Uncertainty, and Doubt” (FUD), and Fear of Missing Out (FOMO). The first BTC price picked up momentum from February 11 and appreciated nearly 15%. But, the upside momentum turns down with the emergence of another sentiment FOMO.
FUD is often spread on social media platforms. If the sentiment favors the market the price started to move up even if the fundamentals do not match up with reality.
Next, FOMO generally comes from the personal judgment and experience of the market. It’s your perception of the market that could result in irrational judgment about the prices.
Bitcoin price is trading in a short-term range of $22k-$25k after witnessing a good move in January. As the prices are getting signals from the trader’s community amid psychological factors. The range is defined as the bottom and top in recent times.
Sometimes, FUD and FOMO psychological indicators work as leading indicators in the market. But it is always advisable to apply other technical indictors and sentiment ratios to take prudent trading decision.
