TL;DR
Bitcoin has surpassed $71,000 with a market cap of over $1.4 trillion, showing potential for further growth due to low trader euphoria (FOMO) and a stable RSI at 60.
Negative BTC exchange netflow suggests reduced selling pressure as investors move to self-custody, indicating bullish market sentiment.
No FOMO
Bitcoin (BTC) has been thriving lately, with its price surpassing the $71,000 mark and market capitalization exceeding $1.4 trillion (per CoinGecko’s data). The asset is 14% up on a monthly scale and 165% yearly, but some essential indicators signal that a further rally could be in the cards.
One such element is the lack of Fear of Missing Out (FOMO). According to the market intelligence platform Santiment, traders are not as euphoric at the moment as they were at previous peaks.
FOMO is a psychological phenomenon characterized by the anxiety that others are having fulfilling or rewarding experiences without you. It often manifests as a compulsive desire to stay connected with what the masses are doing.
In the context of crypto, FOMO refers to the fear of missing out on potential investment gains in a particular digital asset that has been performing quite well.
However, the phenomenon can cause people to enter the market emotionally rather than rationally. Investors might ignore necessary due diligence and investment strategies, leading to impulsive buys at high prices. This, in turn, could lead to crucial losses in the event of a severe market correction.
In many cases, FOMO has occurred during market peaks and has been followed by significant price declines. The lack of it (as of the moment) may indicate that BTC’s bull run is yet to show its full potential.
RSI
Another metric hinting that BTC’s price may continue its uptrend in the near future is the Relative Strength Index (RSI). This technical analysis tool identifies whether the asset is overbought or oversold.
It ranges from 0 to 100, with a ratio above 70 signaling that a correction might be imminent. The latest data shows that BTC RSI is 60, crossing the aforementioned level only four times in the past 30 days.
Abandoning Exchanges
Last but not least, we will touch upon the Bitcoin exchange netflow which has been predominantly negative in the last week (according to CryptoQuant’s data).
Shifting from centralized platforms to self-custody methods is considered bullish since it reduces the immediate selling pressure.
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