Lately I have noticed strange activity surrounding bitcoin that is incongruent to the rhetoric we are all hearing on social media.
The bitcoin market has been booming on the news that “institutional buyers” are pushing up the price by buying up all the available bitcoin.
However this garbage that is being regurgitated by every clueless YouTuber and Twitter crypto influencer has no basis in fact and is actually nothing but an out of control rumour which is causing extreme FOMO (fear of missing out) in the minds of investors and traders that are new to the crypto markets.
Tweets such as this certainly have done nothing but add fuel to the fiery FOMO:
The chart below shows how the price of bitcoin has been getting sold off during the week days and then pushed all the way back up over the weekends.
Institutional buyers of course tend to buy during the working week, NOT weekends!
The sad truth is that these noob investors are building their very own gallows on which they will hang themselves.
The chart also shows how the MACD and RSI on the 4hr chart are crossing downwards from relatively high up and that the price could well drop this week over $1,000 to ~$18,200 where it shall find support on the lower trendline.
BUT… if you look below at the daily chart it shows a rather scary outlook for bitcoin that these noob traders are likely to miss.
The MACD and RSI are both moving lower while the actual price of bitcoin is getting unnaturally forced higher by Average Joe who seems to be frothing at the mouth with FOMO every weekend.
MACD stands for Moving Average Convergence Divergence, Divergence is when the MACD lines are moving in the opposite direction to the price.
The more intense the divergence is the worse the impending price correction will become.
I am here today not only predicting that this correction will happen at some point over the next few weeks but also to predict that when it does happen, rather than acknowledge their own mistake the average bitcoin investor will blame “whales dumping on them”!
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