Bored again… back under 80K!
That means social media is about to be flooded with the usual “Bitcoin is dead” headlines and all that drama.
The recent drop in Bitcoin, according to many analysts, may be linked to increased selling pressure on exchanges.
In fact, yesterday many large American whales didn’t just sell Bitcoin, they also closed a significant number of open positions.
This doesn’t necessarily mean they are running away from Bitcoin, despite what BTC haters would like everyone to believe while spreading panic among retail investors.
We should always remember that large investors operate in a much more technical way compared to the average retail trader. (Ref.)
At the end of the month, especially around CME futures expirations, which is one of the largest financial markets in the world, it often happens that traders close profitable positions, reduce leverage, or free up liquidity to prepare new strategies.
Of course, as small investors, when we see red candles we immediately think of a collapse, while large investors often see simply the end of an operational cycle… and the beginning of the next one.
Obviously, no one has absolute certainty about what will happen in the coming days. It could just be a normal technical move… or the start of a more complex phase.
But in my opinion, I feel that right now there is far more emotional panic on social media than rational analysis.
Let’s be honest… when Bitcoin goes up, everyone feels like a financial genius, and when it goes down, suddenly it looks like the apocalypse has arrived 😄
And if a rebound starts next week, the “apocalypse” will quickly be put aside, ready to be shouted again at the next dip.
And suddenly everyone will become an expert in technical bounces, explaining this drop as just a simple end-of-month phase and position closing.
So be careful with the noise on social media. It’s harmful.
Things are not always black or white - there are many shades in between, and that also applies to the crypto market.
844.467 SRY