The age-old trader\u2019s adage of selling when people are greedy and buying when people are fearful has proven to be empirically accurate, and the same credo applies to Bitcoin (BTC) and the general crypto markets, as upwards price surges typically come about when market participants grow increasingly weary of the market conditions.<\/p>\n
Now, Bitcoin\u2019s fear index is signaling that traders are more afraid of an imminent pullback at BTC\u2019s current price levels than during the asset\u2019s previous pullback<\/a> that sent it down to $3,900 after it sharply rose to $4,200 in late-February.<\/p>\n At the time of writing Bitcoin is trading up nearly 1% at its current price of $5,090, just a hair below its daily highs of roughly $5,100.<\/p>\n Earlier this week, the upwards momentum that Bitcoin and the entire crypto markets had incurred was put into jeopardy after BTC quickly surged to highs of just over $5,400, where it incurred a significant amount of selling pressure that sent it reeling down to lows of nearly $4,900.<\/p>\n This drop instantly shifted the sentiment of the market participants from being highly bullish to overwhelmingly bearish, but some notable traders had predicted the drop and acted accordingly.<\/p>\n Red, a popular cryptocurrency trader on Twitter, spoke about how he traded the recent price action, noting that he shorted the top and subsequently added to his BTC position after it reached the $4,900 region.<\/p>\n \u201cComments as if I hadn’t planned for this since you were euphoric when I shorted the top. Excellent reaction exactly where I wanted it. Price visited my level, and I bought. Simple enough. Now comes flexibility; I will flip bear if need be,\u201d he explained.<\/p><\/blockquote>\n Comments as if I hadn't planned for this since you were euphoric when I shorted the top. Excellent reaction exactly where I wanted it. Price visited my level, and I bought. Simple enough. <\/p>\n Now comes flexibility; I will flip bear if need be. $btc<\/a> pic.twitter.com\/gcth5UYDEO<\/a><\/p>\n — red (@redxbt) April 12, 2019<\/a><\/p><\/blockquote>\nBitcoin Stable Above $5,000 as BTC Forms Fresh Support Levels<\/strong>\u00a0<\/strong><\/h2>\n
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