Bitcoin price is trading just below the key price of $10,000 said to be a FOMO trigger for a major crypto bull rally, but retail FOMO is already spiking according to data.
However, as retail interest spikes, institutional interest is down. Can retail FOMO be enough to spark another bull market, or are institutions necessary for the bigger push?
Retail Buyers Drive Recent Crypto Rally, While Institutions Wait For Breakout
Bitcoin price is at yet another critical junction. The crypto asset’s block reward halving is now in the past, yet the insanely bullish impulse that was expected has yet to happen.
The combination of surging interest surrounding the halving along with low prices as a result of the Black Thursday crypto market crash caused a spark in retail buying.
Coinciding with all of this, the US government began issuing stimulus checks to individual taxpayers. Some of this money, made its way into Bitcoin and other crypto assets, according to Coinbase data.
Data showed an immediate uptick in Bitocin purchased of $1,200, the exact amount of stimulus that was issued at maximum.
Since then Bitcoin price has been on a steady climb and has found itself retesting $10,000 once again.
Thus far, the leading crypto asset by market cap only was able to hold above it briefly before it was rejected.
But even after repeated crashes, Bitcoin price is right back up under high timeframe resistance once again and appears to be poised to take it out for the final time.
— Livercoin (@livercoin) May 19, 2020
Can Retail FOMO Push Bitcoin Price From $10,000 To $20,000 Once Again?
Data shows that retail FOMO is only growing further as Bitcoin price climbs higher. And while institutional interest from the likes of Paul Tudor Jones helped the crypto asset grow from lows, interest from that subset of investors has vanished.
But retail FOMO may be more than enough to take Bitcoin price to a new all-time high.
Natural bottoming and a crypto bear cycle ending caused Bitcoin prices to rise in late 2016, then in early 2017, it turned to FOMO.
FOMO eventually turned into feverish panic-buying of Bitcoin and altcoins at any price, causing a bubble to inflate.
Related Reading | Chartered Market Technician Claims Crypto Poised For Strong Uptrend
In November 2017, BTC was trading at $10,000, and just a month later spiked to $20,000.
Now that Bitcoin price is back at the key level, could another breakthrough of resistance cause yet another immediately spike to retest all-time high?
It’s possible. Due to that asset’s low supply and illiquid market, any surge in demand causes valuations to skyrocket. That’s exactly why when Bitcoin does rally, it grows parabolically until that momentum runs out.
For now, any momentum is being driven by retail FOMO, and they just might push Bitcoin price back to a new all-time high.