Bitcoin: Of FOMO and FUD
Bitcoin's meteoric rise, fueled by increasing daily active addresses and enthusiastic traders succumbing to FOMO, may soon face a price correction.
- Bitcoin has been seeing consistent daily active addresses and whale transactions.
- The king coin has now experienced a seven-day consecutive price uptrend.
Bitcoin’s [BTC] price has surged to a level not seen in more than a year. The enthusiasm accompanying this increase suggested that the asset may be able to sustain its current bullish trend.
Read Bitcoin’s [BTC] Price Prediction 2023-24
Bitcoin sees an uptick
On 23 October, Bitcoin’s price exceeded $35,000, reaching a price level not witnessed in nearly two years. This price surge was accompanied by favorable movements in other key metrics, including the counts of whale transactions and daily active addresses.
per a post by Santiment, these metrics indicated a potential for a sustained uptrend in Bitcoin’s price.
Furthermore, On 24 October, the network recorded over 1 million daily active addresses, a significant milestone. Additionally, the number of whale transactions exceeded 14,000.
It’s worth noting that since the commencement of the price uptrend, daily active addresses have frequently surpassed the 1 million mark. Also, the number of whale transactions has shown a notable increase.
As of this writing, daily active addresses were over 430,000, while whale transactions had crossed 3,000.
FOMO and FUD set in with a price increase
In a separate post by Santiment, it was noted that Bitcoin’s social volume and dominance displayed signs of Fear of Missing Out (FOMO). The chart indicated that discussions regarding buying or selling Bitcoin were prevalent.
As FOMO grew, so did Fear, Uncertainty, and Doubt (FUD). The interplay of these emotions might contribute to the ongoing upward momentum of BTC’s price.
However, despite the positive indicators in these metrics, the price trend displayed some cautionary signals.
Bitcoin could face price correction
At the time of this writing, Bitcoin’s upward price trend had persisted for seven consecutive days when analyzed on a daily timeframe. It was trading at approximately $34,000, with a modest price increase of under 1%.
How much are 1,10,100 BTCs worth today?
This sustained price increase had established BTC in a robust bull trend, as evidenced by its Relative Strength Index (RSI). The RSI’s positioning also suggested that a price correction for BTC was imminent.
Nevertheless, if the other metrics continue to maintain their momentum, there is potential for BTC to resume its upward trend following the correction.
