Bitcoin pushed through $39,000 and is currently trading hands at around $39,400. Things are looking really bullish as anticipation for Spot Bitcoin ETF approvals between January 5th-10th next year are closing in.
Now, one of the things that we should be discussing is whether this could be a “buy the rumor, sell the news” type of event. When everyone is expecting new all-time highs or higher prices, or when the herd is looking, doing, and saying those things, you want to be doing the opposite.
So we want to figure out where we are in that timeline, because I do not think we are there yet. But if Bitcoin pushes up another leg, memecoins and altcoins start popping up, retail comes back in, then that is a time to sell and take profits.
Read: Bitcoin Surges Near $40K
Crypto Analysts’ Sentiments
One of the analysts said, “The longer Bitcoin continues to climb towards 50K without an ETF approval, the more I think this could be a sell the news event. Not trolling.”
Another statement from Matthew Hyland also highlighted the following, “In my opinion, despite Bitcoin reaching annual highs today, there isn’t the excitement matching it.”
Based on Hyland’s first statement, he is absolutely right — a lot of people are not really excited and retail is not here yet. This past month instilled a lot of fear just a few days ago, and many were expecting a crash down to $32,000.
Hyland continued, “When the euphoria returns, I will be more skeptical but it appears the market is climbing a wall of worry which is a very bullish sign overall. It’s almost incredible to fathom that there wouldn’t be excitement at this point. This to me suggests we are going to need much higher prices in order for the greed/euphoria to return.”
So once again, the herd is not euphoric or super bullish. Yes, you have crypto people, myself, you guys, who are the small crowd right now, but when everybody is all talking about it, that is the time to be selling, right? Because many of them are not hodlers like you and I. Many of them are just tourists — they come with the herd, they see the prices going up and they think that is the time to buy.
But we do not buy pumps — we buy when there is fear in the market. But unfortunately, a lot of people do not know that.
Look, things could always change, but until they do, I am going to lean on the facts and what has played out historically. And that is Bitcoin having a retracement movement similar to what it did in 2019 and past bull markets — rallying off the bear market bottom and then hitting the retracement point, then rolling over to test some lows, and starting to work its way back up to new all-time highs.
Altcoins will have their little mini bull market as well, and we will see what prices some of these altcoins hit. But I am not expecting new all-time highs — once these multiple ETFs are approved and it comes out, it will most likely be a ‘sell the news’ event, and we should be ready to take profits at that point.