- Bitcoin HODLers exited the cycle after cashing in on enormous positive factors.
- Is the daybreak of a ‘new cycle’ round, or are we witnessing the top?
Bitcoin[BTC] kicked off November at $68K, however simply two months later, it soared to a brand new all-time excessive of $109K – an enormous 60% surge.
With such positive factors, profit-taking was sure to occur, and in December alone, traders cashed out a staggering $3 billion in earnings.
Now, the market awaits a restoration. In any other case, even holding Bitcoin at $100,000 may develop into a nightmare.
FOMO or Greed: Which facet will dominate?
Merchants are getting much less dangerous within the derivatives market, the place the leverage ratio is shrinking quick. This reveals they’re not sure the place Bitcoin’s worth will go subsequent. Additionally, fewer persons are transferring Bitcoin off exchanges.
Actually, the trade outflows noticed a staggering 16% drop in a single day.
Supply: CryptoQuant
Collectively, these elements recommend that FOMO is fading. Nonetheless, the greed has bounced again from “extreme” ranges – a bullish signal. Why? Revenue-taking is likely to be nearing its peak, as indicated by a Glassnode report.
As per the report, profit-taking is means down, falling from $4.5 billion in December to simply $316 million now – a 93% drop. In keeping with AMBCrypto, if FOMO returns whereas extreme greed subsides, it may set the stage for a major worth improve.
A take a look at the Bitcoin market
Bitcoin dropped 3.26% in a day, however the market isn’t overheating. This implies robust shopping for, seemingly fueled by FOMO, is required to push the worth again up.
Supply: TradingView
Nonetheless, the upcoming FOMC assembly may considerably impression Bitcoin’s restoration. With the assembly only a week away, uncertainty is more likely to persist, making a powerful rebound much less possible within the close to time period.
Apparently, this consolidation interval is likely to be a optimistic signal. It may permit establishments to quietly accumulate Bitcoin whereas the market stabilizes after a interval of great profit-taking.
The bottom line is what the Fed does. In the event that they lower charges, issues may get attention-grabbing. But when they shock us, Bitcoin would possibly dip additional.
Learn Bitcoin’s [BTC] Value Prediction 2025–2026
For now, the market’s displaying indicators of life. Greed is again, and profit-taking is cooling down. This might ignite a brand new shopping for frenzy, particularly as soon as the Fed mud settles.
Keep watch over the U.S. financial calendar – it is going to in the end decide whether or not excessive greed takes over or FOMO makes a comeback.
