Cryptocurrencies

Playing Devil’s Advocate with Bitcoin

Maybe popular opinion scares me, maybe I believe in the psychology of markets and maybe that is why I’m worried about the upside for bitcoin.

Well, that seemed a bit dramatic, but my point is sentiment seems to be high at the moment and everyone is sure bitcoin is going to push 6k.

Herd Mentality

Whenever the majority of people are onboard with something when it comes to speculative investment it makes me hit the brakes.

Don’t get me wrong – there are plenty of reasons to be bullish on BTC in the near-term and I’m not saying I am not.   Shorts seem to outweigh longs the past couple days, price is consolidating after pushing higher.

These are positive items and why I have been looking for a move to 6k, which we basically got depending on the exchange before seeing a pullback.

I’ll be honest.  I’m a bit mentally handcuffed right now.  I don’t want to sell any, but damn if my gut has a bad feeling.  My gut is code for many years of experience trading markets.  Doesn’t mean it is right, but many times I regret not listening too it.

On the flipside of all that, there is a scenario BTC sees as high as 8K before a substantial pullback.  When you look at a monthly chart you can see that, it would call for a strong month of May which would mark the third straight positive month for bitcoin.

I’d rather root for that scenario…..but I will be careful doing it.

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