Bitcoin - FOMO & Capitulation, Say no to Emotions

If you find yourself in a situation where your Bitcoin buy/sells always seem to work against you, it's probably because your emotions get in the way. For those emotional investors who are part of the Herd, it would often be best to do exactly the opposite of what you feel. This is beautifully illustrated by the chart below, it shows the general BTC market sentiment compared to the price of BTC. (Link to the site https://tinyurl.com/ycuwlkvh)

And to the message of this post! Don't buy recklessly when the general sentiment towards BTC gets really high. As seen through the entirety of this year, high sentiment or greed was usually a bad omen.

Fear, on the other hand, has usually been followed by a decent rally, providing great opportunities for traders with the contrarian mentality, at that point. Extreme fear is the point where you should NOT panic sell, it will most likely result in the price rallying within the days after you sold.

This is by no means investment advice, and should not even be considered as a technical analysis. Just wanted to share this idea so that you will not be one of those FOMO buyers or panic sellers. Also, it will be interesting to see if we will have another rally soon, as the Fear & Greed Index might indicate, what do you think?