Bitcoin: The psychology behind BTC’s boom, and why $73K is calling
The post Bitcoin: The psychology behind BTC’s boom, and why $73K is calling appeared on BitcoinEthereumNews.com.
Bitcoin was experiencing a psychological surge, making a correction unlikely for now. However, when the fundamentals eventually take over, panic could ensue. Fears of market overheating are rising as Bitcoin [BTC] surges past the $68K benchmark, breaking a four-month slump, even as the RSI sees a sharp decline. As a result, trading just above this critical level may signal a potential top for BTC. If this range is confirmed as a resistance point, a price correction could be on the horizon, potentially forcing mass capitulation. However, Bitcoin’s surge — Psychology over fundamentals Firstly, it’s essential to consider that Bitcoin is heavily influenced by macroeconomic factors. Currently, a confluence of events – such as the post-halving surge, the nearing end of the election cycle, the “Uptober” frenzy, and cuts in Fed rates – has combined to propel Bitcoin to $68K in just ten days without any solid pullback. This is important because, despite key technicals pointing to a near-term reversal, these macro factors may strengthen large holders’ belief that this is a key buying zone. In other words, big players might still see this level as an opportunity, and this psychological momentum could draw in more buyers, fueled by rising FOMO as market sentiment heats up. Source: Glassnode Supporting this is the rise in whale activity: addresses holding 1K–10K BTC have hit a 3-month high. The last major spike occurred alongside a 5% daily price surge, pushing BTC above $66K. In simple terms, whales have played a key role in countering bearish pressure. Since the start of October, their activity has reinforced AMBCrypto’s initial hypothesis: macro factors are drawing in big players. Overall, this cycle appears to be psychologically driven. So, despite bearish attempts to short Bitcoin, the likelihood of a significant correction seems slim for now. Market buzz leading the…
Filed under: News - @ October 20, 2024 11:02 pm