It's necessary for a prominent trader to separate market tendencies from the emotions of the participants.
Panic narratives are easily sold
CryptoBirb highlighted that people repeat mantras about a ‘dead Bitcoin’ that ‘will never recover’ solely on the basis of extreme market fear, but not on real evaluations of the crypto king's future.
$btc is dead, will never recover narrative is easily told by extreme fear sentiment. Nothing bullish about breaking trendline, while investors monitor trends (directional movements) over trendlines. Trends may include deviations. Next weeks will define the future for all of us? pic.twitter.com/BNWHhXUqKa— Crypto₿irb (@crypto_birb) March 17, 2020
To prove his position, the trader showed ‘CNN’s Fear & Greed Index’, the integrated indicator of market sentiment. In the past few days, this index plummeted to below 5 points out of 100, which means ‘Extreme Fear’. One month ago, it was ‘Neutral’ at 49 points out of 100.
Alongside that, CryptoBirb admitted that the Bitcoin (BTC) price chart looked very bearish as it broke below the trendline. This may scare off investors who are very careful of long-term trends in price behavior.
However, bulls are not ready to toss in their towels. CryptoBirb believes we should just wait a little as the
Next weeks will define the future for all of us
This advice may be the most prudent for the vast majority of market participants. Periods of high volatility may not be the best times to enter spot markets, let alone derivatives or margin trading.