Bitcoin prices fall back down to $78K. Why is the rally hitting a wall?

• BTC-USD

<a href="https://xpertsstudio.com/bitcoin-wallets-dormant-for-over-a-decade-move-40m-in-one-week/” title=”Bitcoin Wallets Dormant for Over a Decade Move $40M in One Week”>Bitcoin (BTC-USD) prices have fallen back below $80,000. Scott Melker explains why the rally is stalling.

Bitcoin back at $79,000 after 81k rejection. Why did the rally hit a wall? We actually have an amazing live video of Bitcoin price action that we’d like to show you right now.

If you haven’t been watching the Chinese Robot Olympics, I really don’t know what to tell you.

I mean, there’s thousands of these videos on the internet giving me great confidence that the technological technological revolution is not in fact here yet and we’re going to just be fine as human beings. But yeah, Bitcoin’s running into a wall. That look why can’t they decelerate?

They can’t decelerate. They just have to run straight into a wall and literally explode. Those are probably expensive robots. I literally can’t. But here you go. So we obviously have Bitcoin jumping up to around 80,000. Crypto greed gauge hits highest since just before October 19 billion wipeout.

I am seeing this narrative everywhere and it drives me absolutely nuts. Bitcoin spent a historically long period in fear, right? If you were looking at the sentiment index, it was fear, slight spikes out, extreme fear for months at a time, something that had never happened before.

We finally exit fear and get into greed for the first time, and you already have the crypto media talking about the October $19 billion wipeout and how this is exactly the same. So take a look back at the crypto fear and greed index then and you will notice that we were in a raging bull market with Bitcoin going all the way up to $126,000.

And much like how we have been in fear here, we had a long sustained period of greed and extreme greed. We just got there. This is just the beginning of a sentiment shift, and it is disingenuous to compare it to the top of the entire bull market.

Much like RSI can stay overbought for a very long time when things get going, it’s actually a bullish sign, so can the greed sentiment in the crypto market remain elevated for a very long time. I think that this is a bullish narrative and not a bearish narrative.

We’ve talked endlessly about why price went up. We don’t need to do that anymore. I would just reiterate that when price goes up 24% in a single week and you see things getting overheated, you can expect a healthy retracement and an opportunity hopefully to buy some dips, right? Leverage builds back up and that has to get flushed and then you go hit the key levels.

At this point, the most important level on the chart is the 50 MA on the weekly, which is exactly where this move tapped. It’s only August, people. If we are in fact moving into a new bull market, we have lots of time still to participate because price would be going much, much higher.

Source: finance.yahoo.com