The billionaire investor Warren Buffett always advocated that one should be fearful when the world around is greedy and should be greedy when the world is afraid. It could not have been more apt than today when investors put in millions into Bitcoin as BTCUSD started rising past $10,000. Bitcoin dropped to $9,519.
All this fanfare surrounding Bitcoin is because of the upcoming reward halving. Historical trends suggest that BTC rose exponentially after each halving. Nobody wants to miss out and gain from the exponential returns this time. At least that is what Bitcoin endearers are hoping.
Is more trouble coming for BTCUSD investors?
Bitcoin is undoubtedly one of the most talked after instruments in the financial markets currently. There is massive retail as well as institutional participation in BTCUSD.
Let’s take a look at the daily chart for BTCUSD. Source: TradingView.com
However, looking past the mammoth attention and glamour of BTCUSD, a look at the technical charts for BTC reveals a different picture. The day’s range for Bitcoin is $9,519.47 — $9,914.00. A lot of selling pressure brings a decline in BTC prices.
Where is the BTCUSD headed?
As of writing this article, Bitcoin traded at $9,672. RSI is on a downward slope. With three days left for the Bitcoin halving, a lot of pessimistic investors and whales would have opted for booking their profits.
However, let’s be clear on one thing- Bitcoin is bullish in the long term. Like all other financial instruments, BTCUSD too will have highs and lows. However, as an investor, the wise decision would be to buy an asset at a fair price, and not jumping into it when it is highly overpriced.
