BTCUSD - Greed is good, correction is healthy

2 Jan 2021

Okay...

If you've been following Bitcoin and through 2013 peak and 2017 peak, you might feel that similar euphoria is in the air as on the last time. Maybe a bit less this time as it's mostly filled with institutional interest rather than retail.

Although looking at Google Trends for the keyword Bitcoin we see retail interest is starting to pick this up:
trends.google.com/trends/explore?date=today 5-y&geo=US&q=bitcoin

As much as I love Bitcoin, a healthy correction is overdue. Unfortunately the faster the higher the price moves the more likely we're going to move into very bearish scenario and longer down trend.

Investors with right mind aren't (or at least shouldn't) buy in right now. Every indicator practically says we're in overbought territory. It's a matter of perspective and sure in the long term Bitcoin is going to 100k-200k this cycle, but smart money is waiting for a correction. The current price is greatly powered by FOMO. Unless something horrible happens to USD and other traditional assets that might increase the Bitcoin price, I'm taking a very cautious an rather bearish tone here.