While cryptocurrency markets were volatile over the weekend, Bitcoin (BTC) $60,106 its price briefly rose by 6% but then resumed a downtrend. BTC prices remain at mid-August levels, defying predictions that it would fall below $40,000. The Fear and Greed Index is in the “Fear” zone as the effects of emotional trading continue in the market.
BTC Price Movements
BTC saw a 6% increase in the past week, from $55,000 to $59,000. However, this increase was short-lived, with the price dropping 2% to just over $60,000. Despite this, BTC’s monthly movements appear to have remained largely unchanged.
The Effects of Emotional Trading
Emotional behavior plays a major role in crypto markets. Rising prices trigger greed and fear of missing out, while declines often lead to panic selling. The Fear and Greed Index notes that excessive fear can signal a buying opportunity, while excessive greed can increase the likelihood of a market correction.
Analysts’ Views: Possibility of a Bullish Pennant
Famous crypto analyst Titan of Crypto says that BTC could rise to $92,000 and that a chart pattern called a “bullish pennant” has formed. This pattern is a chart pattern that usually signals that an upward trend will continue.
Another analyst, Michaël van de Poppe, says that there is a bullish potential not only for cryptocurrencies but also for commodities. Van de Poppe says that commodities and cryptocurrencies are largely undervalued and could enter a long-term bull market.
The end of the gold standard in the US in 1971 caused significant changes in commodity prices. The year 2000 was a year of economic change, with the end of a major bull market in stock markets. Today, the effects of these historical events continue to be observed in crypto and commodity markets.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
