The post Has This Blunder Retarded Bitcoin’s Trajectory Towards $100k? appeared first on Coinpedia – Fintech & Cryptocurreny News Media| Crypto Guide
The world is bright and cheerful with the start of a new year. Crypto savvies are hoping to ride the bulls to moonish highs this year. Merchants and hodlers from the crypto town are determined to revamp their tactics with the dawn of the year.
The skittish market has lessoned a host of chapters in 2021, which could help traders make most of the opportunities. Older hands are now restructuring their strategies as the market is now witnessing constant shifts. Veterans are now more keen on emotional analysis alongside technical analysis. Whilst lucubrating the trajectories of Bitcoin in regard to the movements of USD and S&P 500.
Is This What Novice Traders Need To Learn?
The lengthening market cycle has been nerve-wracking for novices. Who has made their way to the game in hope of making quick riches? Sections of veterans believe a collective miscalculation from traders to be the rationale behind the supercycle. Successively, the psychology of traders has been the primary factor in the chart patterns, and market trends.
Wherefore, the “Fear and Greed Index” has been emerging as a vital tool to make trade decisions. Seasoned traders, being well-versed with the emotional aspects of trading, have been surfing the high tides. The psychology of amateurs traverses from hope to optimism, traveling through thrill, euphoria, anxiety, panic, and then falling to depression. Results in novices parting ways with their holdings with the water spout by whales.
In the digital world, while everyone is using similar technical indicators, the age-old emotional analysis would be the go-to tool. A trader must also consider the project’s fundamentals, team, statistics, aim, developments, and community. Which gives a bigger picture of the digital asset’s future. The move could further help in breaking through the barriers of the supercycle.
A Strategy For Bitcoiners?
The year 2021 in general has been a year of accumulations for the market leader Bitcoin. The digital coin has sailed through hardships such as the Chinese crackdown, the Evergrande crisis, inflation, USD strength, amongst others. The strength of BTC is correlated with that of USD and S&P 500. While USD’s fall is BTC’s gain, the strength of the S&P 500 in relation to BTC has been a debatable topic.
However, in the majority of the cases, the rising strength of the S&P 500 has been a catalyst for BTC’s bullish run. Which partisans believe to be the reason why Bitcoin has been in a phase of accumulation and not faced the ground. Veterans from the industry are keen on the strength of the dollar and that of the S & P 500, in hope of a blasting projection of Bitcoin in 2022.
Collectively, the star crypto might continue accumulating prior to any bullish news. The bigger picture looks brighter, in view of the falling dollar, inflation, and a plausible hike in interest rates. With traders learning to surf over the psychological barriers, we can foresee Bitcoin escalating up and beyond its $100k target, and altcoins following suit.
Source: https://coinpedia.org/bitcoin/blunder-retarded-bitcoins-trajectory-towards-100k/