{"id":448678,"date":"2020-11-03T14:00:04","date_gmt":"2020-11-03T14:00:04","guid":{"rendered":"https:\/\/wncen.com\/?p=448678"},"modified":"2024-06-11T14:07:53","modified_gmt":"2024-06-11T14:07:53","slug":"recipe-for-bitcoin-monster-rally-fud-overruns-markets-again","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/recipe-for-bitcoin-monster-rally-fud-overruns-markets-again\/","title":{"rendered":"Recipe For Bitcoin “Monster Rally:” FUD Overruns Markets Again"},"content":{"rendered":"
Traders believe Bitcoin (BTC) is gearing for a \u201cmonster rally,\u201d as the market sees heightened levels of FUD.<\/p>\n
The term FUD is an abbreviation for fear, uncertainty, and doubt. Traders often use this term when the market sentiment suddenly turns negative after a series of pessimistic events.<\/p>\n
But, Bitcoin tends to recover when FUD in the market intensifies, as it shakes out weak hands. In the medium term, analysts anticipate this to lead to a broader BTC rally.<\/p>\n
<\/p>\n
The 1-hour price chart of Bitcoin. Source: BTCUSD on TradingView.com<\/a><\/pre>\nUncertainty spikes in the Bitcoin market<\/h2>\n
In the past week, Chinese miners have existed en masse after the rainy season ended. During the rainy season, electricity becomes cheaper, which makes mining more efficient. Consequently, it caused the hash rate of the Bitcoin blockchain to plummet.<\/p>\n
Shortly thereafter, major cryptocurrency exchange Huobi saw large outflows from its exchange. CryptoQuant, an on-chain market analysis firm, said<\/a>:<\/p>\n
\u201cLooking at #Huobi netflow, $BTC outflow has soared in the last eight hours.\u201d<\/p><\/blockquote>\n
As NewsBTC reported, the confluence of the uncertainty around Huobi and the U.S. election led the market sentiment to dwindle.<\/a><\/p>\n
<\/p>\n
Huobi netflow. Source: CryptoQuant<\/a><\/pre>\nBut, traders say that based on historical cycles, this is an ideal time for Bitcoin to see a trend reversal.<\/p>\n
Throughout the last five days, a significant level of uncertainty has emerged in the cryptocurrency market. As a result, BTC fell from $14,100 to $13,400, recording a 5% fall.<\/p>\n
A pseudonymous trader known as \u201cByzantine General\u201d wrote<\/a>:<\/p>\n
\u201cFunny enough it’s mostly longs that have been getting chopped up in this range. By the way… Election FUD, Huobi FUD, Hashrate FUD, mostly longs shaken out. This sounds like the perfect recipe for another monster rally to be honest.\u201d<\/p><\/blockquote>\n
However, as seen in the previous controversy around OKEx, when the exchange temporarily paused its withdrawals, FUD has historically been followed with a relief rally.<\/p>\n
Funding is still negative and this is key<\/h2>\n