Despite the many utilities that have Bitcoin in daily life, at the end of the day the criptomoneda continues to be a financial instrument. And therefore, one of the main drivers behind the behavior of its price is the speculation of the investors. Therefore, it is so important to try to understand what goes on in the mind of the traders of the currency to know where it will lead. And in these moments, the rate of Bitcoin is about greed in the extreme.
The price of Bitcoin
The last few months will become part of the history of Bitcoin. Therefore, from the Third Halving in the Blockchain of the criptomoneda, all the eyes of the crypto world are put on the price of the same. The face of the expectations generated by a possible increase of radical in your quote, thanks to the positive effects that would bring about the Halving on their supply.
And is that, although a good part of the analysts of the crypto world believe that the decrease in the rate of increase in the monetary liquidity of BTC, in addition to a steady demand, should generate a new rally in the criptomoneda. The first few weeks after Halving were marked by the stagnation in the price of Bitcoin. Which remained at around $ 9,000, up to a few days.
So, when pessimism began to prevail among crypto users, since 21 July the price of the criptomoneda has been increasing steadily exceeding 11,000 dollars. Generating positive expectations once more between the traders of crypto assets. Those who hope that this is the start of a great new rally of Bitcoin as that which led to its price to almost usd 20,000 in 2017. Something that is reflected in the rate Bitcoin.
The greed extreme reaches the index of Bitcoin
The rate Bitcoin is one of the most useful tools for the traders of the crypto market. Therefore, the same reflects the mood of the general of the traders with regard to Bitcoin. And since the performance of the price of BTC depends on the interaction between the supply and demand of these traders. The rate Bitcoin is a perfect indicator of where it will lead the currency rate.
Index of Bitcoin is about greed in the extreme. Source: Alternative.I
And in the previous days, we have seen an increase in slow, but constant, in the optimism of the traders with regard to Bitcoin. Moving from a situation of fear in the previous month, going through a greed to moderate in the last few weeks, until you get to the greed extreme that reflects the index to this day.
However, we must not let this deceive us. Therefore, an optimism as big around at the price of Bitcoin is also not positive for the market. Therefore, the same would indicate an excess of impulses to be speculative in the decisions of purchase and sale to the traders. Which, though it brings profits in the short term, necessarily leads to a fall in the price in the medium term.
This is so because, if the impulse speculative leads to criptomoneda above what would be its price natural market, in the end this momentum, the market will correct itself. So, from now on, we must be particularly careful with our investment in BTC. What makes this index our Data today here in CriptoTendencia.