Bitcoin is maintaining the $5,000 level and trying to move up from a key resistance level of $5,150 but Crypto Michaël, technical analyst and crypto trader suggests caution because of low volumes. He tweeted;
“…first level of importance ($5,000 level) is beautifully acting as support here. I’d like to see how we’re going to react against the upper range area of $5,150. Overall still cautious, because the volume is weak.”
If the ‘locking down of profits‘ occurs, as suggested by The Crypto Dog, a decline in bitcoin price is likely and Crypto Michaël is eyeing at $4,650 as the buying level;
So far not much has changed, overall I’m finding the market to behave pretty weak.
Eyeing the lower levels around $4,650 for a possible long. If we grind towards $5,150 I’m eyeing an additional short. Still short on some majors now.
Boring market. pic.twitter.com/5vQVhfAZeA
— Crypto Michaël (@CryptoMichNL) April 13, 2019
In a historical perspective, bitcoin price explains the investor emotional cycle. The investor emotional cycle stages are in congruence with bitcoin price as earlier periods of optimism, excitement, thrill and overconfidence leading to euphoria, was observed in 2017 when prices skyrocketed. These stages have been followed by investor emotions of anxiety, denial, anger, fear, despair, panic and capitulation till now. Forward from this low spirit is hope and relief that brings the investor emotions back to the optimism, starting the bull market again.
In February, explaining the crypto market situation to BlockPublisher, Boss Cole, founder and CEO of Bitcoin investing academy, Boss Crypto had said;
We are through the anger and capitulation stage. Engagement in cryptocurrency related groups, forums, etc is down as much as the average altcoin is from it’s ATH [all time high]. Most of the traders I know have switched for Forex or completely given up.
Investor emotional cycle is a series of emotions that represent how they react to the ups and downs of the market. These reactions are inherently human-like in nature and constitute as to what an investor would do next.
Traders giving up the market suggests the state of extreme depression which is the ’emotional bottom’ of this cycle. Investor emotional cycle explains the ’emotional bottom’ but does it also suggests that bitcoin price has bottomed? Answering the question, Cole had said;
We are near the bottom, in psychology and the overall emotional cycle. It does not, however, insinuate that we are at the bottom in price however the odds are in the favor of that bet being correct.
Has the market bottomed and are we looking at new highs for bitcoin is unclear yet but one of the renowned personalities in the crypto world, John McAfee values bitcoin at 2 million dollars;
I don’t care if its a penny today, it’s going to be 2 million dollars very soon…What’s happening in the market has nothing to do with the reality of its value.