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Bitcoin FOMO pushing the price?

Bitcoin FoMo pushing the price

The fear of missing out on the price dubbed the Bitcoin FOMO is one of the major issues that Bitcoin traders face almost every year. With the last quarter quickly closing in, FOMO buying chances are also increasing with each passing day. It happens to be a repeated pattern that long-term traders are well aware of and manage their day trading risk.

How does Bitcoin FOMO affect the price?

The fear of missing out results in excessive buying, newbies, and traders reading about the year last quarter pattern often becomes the bait in this scenario. If you look at the yearly pattern since 2017, the last quarter is a telltale of people excessively buying Bitcoin while the trading volume drops. This creates a gap between the actual market demand and the demand swell. In 2019, the Bitcoin FoMo plunged the market in a state of unrest until the end of the year, and the real highs were delayed until the first quarter of the year 2020.

Bitcoin FOMO pushing the price? 1
Bitcoin FoMo on price chart by Trading View

On the other hand, if we look at the current Bitcoin price movement indicators, we would see that for the past 30-days, a possible FOMO is pushing people to excessive buying. This includes institutional investors such as GrayScale, who already owns over two percent of the Bitcoin circulation.

Bitcoin FOMO pushing the price? 2
Bitcoin FoMo pushing buying trend: Chart by Trading View

It is evident from the chart above that in the past 30-days the overall trend has been buying. It is a bit easy with a simple buy signal on the technical oscillators, but on the moving average charts, it has been indicating strong buying signals.

At the time of writing, even most analysts believe a market swell that is not naturally aligned with the technical indicators, such as the current volume and the bearish divergences. This leads the trader to believe that Bitcoin is likely to see a retracing movement anytime soon.

Adding the Bitcoin FoMo theory, it appears that the market sentiment is at a more complicated point this year, making the day traders’ job tougher than any previous year. Cautious trading is advised as always.

Disclaimer: The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

Saad B. Murtaza

Saad B. Murtaza

Journalist, Writer, Editor, Researcher, and Strategist with over 10 years of experience in the digital, print and public relations industries, Saad has been working with the mantra, Creativity, Quality and Punctuality. In his waning years promises to build a self-sustaining institute that provides free education. Carrying a diverse portfolio he has studied and written on topics related to cyber crimes, scams, blockchain, and cryptocurrencies.

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