Last week, crypto Twitter was full of bearish rhetoric. It was to the point that even I was beginning to think the market would make an example out of them and turn higher.
Fast forward to this week, and it’s difficult to spot the bears amongst the bulls.
What a difference a week makes. This week’s news that Bitcoin is now legal tender in El Salvador has a lot to do with the change in mood.
Don’t get me wrong, that’s BIG news!
It means other countries will soon be forced to follow El Salvador’s lead.
But the fact that most on Twitter turned super bullish again after a single green day is a worrying sign.
It tells me that the May flush might not be enough.
Institutions and whales want to cause panic. They want you to lose faith in crypto so they can buy what you’re selling at a discount.
When sentiment flips back to bullish again so quickly, it’s an indication that there’s still too much belief in these markets, which doesn’t benefit the powers that be.
Combine that with the two weeks until June 25th (see issue 13), and an intriguing and potentially bearish scenario develops.
Let’s get it!
Bearish vs. Realistic
Before we talk about sentiment and get into the charts, I want to clarify something.
I’m not bearish on cryptos, at least not in the long run.
Since last year or even earlier this year, those of you who have followed me know how bullish I was on the entire market, especially ETH and VET.
I was buying ETH in the $200s, and I first bought VET below a penny.
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