Powerful Retail Crypto FOMO Spikes As Institutions Take Pause

Tony "The Bull" Severino

5 years ago

2 mins read

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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.

FOMO kickin' in hard.#Bitcoin #CME #COT pic.twitter.com/gbUpxu6nEF

— 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.

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.

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

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In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

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Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.