Three Reasons Why the Bitcoin (BTC) Bull Run Hasn’t Picked Up Yet

TL;DR

Bitcoin has surpassed $71,000 with a market cap of over $1.4 trillion, showing potential for further growth due to low trader euphoria (FOMO) and a stable RSI at 60. The net flow of ‘negative BTC exchange suggests a reduction in selling pressure as investors move into self-custody, indicating bullish market sentiment. No FOMO

Bitcoin (BTC) has been booming lately, with a price above $71,000 and a market capitalization exceeding $1.4 trillion (according to CoinGecko data). The asset is up 14% month-on-month and 165% year-on-year, but some key indicators suggest another rally could be on the cards.

BTC Price, Source: CoinGecko

One such element is the lack of Fear of Missing Out (FOMO). According to market intelligence platform Santiment, traders are not as euphoric at the moment as they were at previous peaks.

FOMO is a psychological phenomenon characterized by anxiety that others are having rewarding or rewarding experiences without you. It often manifests as a compulsive desire to stay connected to what the masses are doing.

In the context of crypto, FOMO refers to the fear of missing out on potential investment gains in a particular digital asset that has performed quite well.

However, the phenomenon can cause people to enter the market emotionally rather than rationally. Investors may ignore due diligence and necessary investment strategies, resulting in impulse purchases at high prices. This, in turn, could lead to crucial losses in the event of a severe market correction.

In many cases, FOMO has occurred during market peaks and has been followed by significant price drops. The lack of this (as of now) may indicate that BTC’s bull run has yet to show its full potential.

RSI

Another metric that indicates BTC price may continue its uptrend in the near future is the Relative Strength Index (RSI). This technical analysis tool identifies whether the asset is overbought or oversold.

It ranges between 0 and 100, with a ratio above 70 indicating a correction could be imminent. The latest data shows that BTC RSI is 60, crossing the mentioned level only four times in the last 30 days.

BTC RSI, Source: Crypto Waves Abandoning Exchanges

Last but not least, we will touch on the net exchange flow of Bitcoin which has been predominantly negative in the last week (according to CryptoQuant data).

The shift from centralized platforms to self-custody methods is considered bullish as it reduces immediate selling pressure.

BTC Exchange Netflow, Source: CryptoQuant

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