Bitcoin has broken above $109,000 in a sudden bullish move, paving the way for altcoins to also have some relief.
According to data shared by Santiment on 2 July, this sudden bullish move may be short lived because of the rising interest from retail investors that it has triggered across different social media platforms, also known as FOMO.
The effect of greed
One of the effects of bullish moves like the current one is the increase in the greed of investors. Retail investors begin to rush into assets in fear of missing out (FOMO).
This kind of knee-jerk reaction usually leads to reversal of the gains that have been recorded because whales may take profits, which reverses the trend, no matter how short.
In worse cases, the retailers who FOMO in may also start to sell, leading to further declines in the price of the asset. This is likely to be the case according to Santiment.
Historically, it is when fear is at its peak that prices tend to rise and crash when greed reaches its peak.
This is confirmed by the Fear and Greed Index, which shows the level of fear or greed that is in the market at any point in time.
What about altcoin? .
Ethereum, a critical indicator of altcoins’ performance, has also seen an impressive bounce alongside Bitcoin.
The asset crossed the key level of $2600, which according to analysts could mean good days ahead for altcoins.
If the largest altcoin by market cap manges to sustain this upward move, altcoins may be close to reaching an altcoin season which many investors have been waiting for.
This will mean that Bitcoin’s dominance which has increased significantly recently has to drop, which means the price also has to drop, we just don;t know when.
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