- November 6, 2024
- Posted by: admin
- Category: BitCoin, Blockchain, Cryptocurrency, Investments
The post Bitcoin Price May Surge 30-40%, But Experts Warn Against FOMO Buying appeared first on Coinpedia Fintech News
Bitcoin (BTC) price experienced higher volatility today following the confirmation of pro-crypto Donald Trump as the President-elect of the United States following the November 5 elections. The volatility is expected to continue in the coming days as the Federal Reserve and the Bank of England prepare to revise their respective benchmark interest rates on Thursday, November 7.
Nonetheless, the crypto market is highly elated with the fear of near-term correction significantly lower than last month. The notable increase of FOMO traders, amid the recent short squeeze triggered by the victory of Trump over Kamala Harris, could further pump Bitcoin price in the coming weeks.
Top Reasons Why Crypto Investors Should Proceed With Caution
According to Ki Young Ju, the founder and CEO of Cryptoquant, Bitcoin investors who purchased at the height of the bear market in 2022 are now preparing to take some profits in the coming months. As a result, Young highlighted that now is not the best time for investors to go all in on the Bitcoin market.
Furthermore, the diminishing returns scenario could hinder Bitcoin price from performing similarly as the bullish breakout late last year, which yielded more than 368 percent in gains.
Most importantly, Bitcoin’s dominance has reached a crucial milestone above 60 percent, which is a major psychological resistance level. Additionally, the weekly Relative Strength Index (RSI) for Bitcoin dominance has remained at oversold levels, signaling an imminent reversal in the near term.
A reversal in Bitcoin dominance will give space for the altcoin market led by Ethereum (ETH), Solana (SOL) l, and Dogecoin (DOGE), among others to thrive in the coming months.
