How is it possible that FOMO will skyrocket Bitcoin to next price level and when will it retrace to shake all FOMO buyers? Bitcoin leg up is already intact so follow it
In this video in just a few moments, I'm going to show you a very important chart, a bit chronic, potentially blow your mind. It's very interesting. I'm going to show you that in just a few moments and explain to you what it means. Uh, before I do that though, I just want to make sure I clarify two very important points. The first thing I want to mention is this, that despite this massive parabolic rise in the price of Bitcoin, I want to make sure it's clear to everyone that I did not expect this massive move. I certainly did not expect such a parabolic rise in the price of Bitcoin so quickly. You serious? Yes, seriously. So what I'm trying to do is just put my cards on the table and be completely honest with you guys. I was not expecting such a massive parabolic rise in the price of bitcoins so quickly.
Now I should say, should clarify that last week I mentioned to our members that bitcoin could potentially and probably move towards 6,500 as resistance. So I was expecting a probable move towards 6,500 as resistance, but I was certainly not expecting bitcoin too quickly, blast through that level and move towards a thousand so fast. So this move, uh, certainly can as much of a surprise to me as many other people. And by the way, I should mention this, that if you saw this move coming, you know, if anybody's watching this video and you saw this massive move in the price of bitcoin coming so fast, then you know what guys? My hat's off to you. You're a better person than I. I should also mention it, the long position I opened on Bitcoin, quite a small position actually on bitcoin has been doing quite nicely. As you can see here.
And I'll be closing this position pretty soon. In fact, once we get the exit signal. Now the second thing I want to mention is this, that some people say, I'm always bearish on bitcoin. That's quite interesting because only a few months ago I posted this video. You might remember this. And I said, why Bitcoin can go to 30,000 in the near future. All right guys, in fact, and to see, to explain to you, here's a chart I explained to you in that video why Bitcoin can go 20,000 to 30,000 and potentially the next few years. In that video, what I showed you was this chart and I showed you to idealize paths where the price of bitcoin and in that video I said that bitcoin could potentially bottom in the middle of 2019 and then start to rise in a bull market towards the 20,000 or 30,000 levels by the year 2021 now I should just clarify that I expected bitcoin to retest the 2018 Lowe's before bottoming out and then starting to rise towards the 20 20,000 or 30,000 levels.
What I did not expect was a move that looked like this, which is what has happened so far recently, so let us certainly come as much of a surprise to me as many other people. By the way, I know some of you are probably asking, could bitcoin's still retest these previous lows of 2018 well, I'm going to cover that for you in a separate video, which we'll explain that in more detail. By the way, one more thing. When I posted my video about bitcoin going to 30,000 next few years, people were commenting on my video that I was being too bullish on bitcoin. That in fact I was trying to pump up the price of bitcoin deliberately, so it moves towards thirty thousand twenty thousand all I have to say to that is that is so ridiculous that it deserves only one response.
All right guys, so let's turn our attention now to the price of Bitcoin and I'm going to show you this chart that you see here. This chart is courtesy of Jason [inaudible] and Jason looks at the sentiments on the markets sentiment, as I'm sure you probably know, is how optimistic and pessimistic people are on a given market. And right now, according to Jason's charts, the sentiment on bitcoin has reached such extreme levels, not seen since 2017 as you can see right there guys. So guys, what I'm saying here is this, according to this chart, the levels of extreme optimism and the levels of extreme bullishness are off the charts. In fact, they are reading the reading is so extreme, it's at the 2017 levels and we all know what happened in 2017 as you can see right there. So as you can see here from this guy, this sentiment on bitcoin has reached such extreme levels.
We are now at 2017 extreme optimism levels at a dangerous level. In fact, you can see what happens, um, back in 2017 and that is not surprising. Whenever, anytime price of anything price of any market goes into a parabolic rise. As you can see here and when it hits those extreme sentiment readings, the result is not always very good. As you can see here, bitcoin pretty much gave back all that gain that had made right there. It wasn't just in 2017 by the way, look at this. This is back in 2016 or 2015 I think it was when bitcoin also reached a very extreme optimism level, and I did this. You can see our parabolic rise and pretty much gave all of that back in just a few weeks. That exact same thing about a year earlier. As you can see right there. Now I know some people are watching this video on thinking, well, hang on a second.
The smart way you should try to start Bitcoin trading with small amount of money
Isn't an extreme optimistic reading on bitcoin? Isn't that a good thing? Isn't that a positive thing for bitcoin? No, it is not. It's a terrible thing for bitcoin. Serious. Yes, absolutely. Because usually when things like this happen, it's a contrarian signal. Okay? Extremes and market sentiment are contrarion indicators, contraring signals, and the last time something like this happened I just showed you in 2017 the result was not very good. It meant that bitcoin was very likely going to make a sharp reversal very soon. Now, this does not mean that the price of bitcoin has to reverse immediately. Of course not. Sometimes price can often ignore the laws of gravity and can ignore overbought and oversold signals. So we have to be very careful here. I do think that eventually this market here is going to see a very sharp retracement as explained to you in a previous video.
I think a 50% to a 61.8% retracement is quite likely as possible. We could come back and retest some previous support levels. Uh, for example, the, uh, 5,600 to 5,000 levels. So I do think a reversal and a retracement and the price of bitcoin after such a sharp parabolic rise is likely. So this is a dangerous parabolic rise in the price of Bitcoin, but also equally dangerous has tried to stand in front of this rally. Okay. So I think probably the more, the more safer approach would be to let the momentum behind this rally fade away, let it fizzle out. And then let's see when that retracement comes through, we need to be very cautious here. I think the people who are mostly driving this market higher or the fomo crowd, fear of missing out crowd, essentially people who are saying, get me into any prize, just get me into any prize whatsoever.
Uh, the fomo crowd are absolutely getting delirious and very optimistic. And as a result, this has been causing the price of Bitcoin to go massively higher. And yes, there's short squeezes doesn't mean a short squeeze in the price of Bitcoin as well stops being taken out, um, as a result of short sellers. And that's certainly also driving the price up higher as well. But as a sentiment chart to show us a few minutes ago, we need to be very cautious and be on our guard because these parabolic rise can be often dangerous and result in very sharp reversals as well. All right, guys, I hope this video helps and I'll see you guys in the next video.