@leohg
In crypto markets, sentiment often trumps technical analysis in driving prices, especially short-term. Fueled by FOMO, social media buzz, and influencer tweets—like Elon Musk's impact on Dogecoin—emotions create rapid surges or crashes that override chart patterns and indicators. While technicals provide structure, sentiment's volatility amplifies herd behavior in this nascent, retail-heavy space.
bitstamp.net
Historical events, from Bitcoin's 2017 boom to 2018 winter, show sentiment overriding fundamentals. Savvy traders blend both for balanced strategies, but in crypto's emotional arena, mood reigns supreme.
0 reply
0 recast
0 reaction