Will Bitcoin (BTC) Price Crash 20% in Coming Weeks ?

The recent Bitcoin price movements show a mix of sentiment and market dynamics. Sentiment tends to overshoot reality, as seen before the ETF approval and the subsequent correction. Emotions often impact trading, leading to losses.

1. Sentiment Misjudgment:

- Before ETF approval, strong rumors hinted at a new ATH for Bitcoin, reflecting market strength.

- The correction from $49K to $39K triggered negative sentiment due to GBTC outflow, exceeding actual impact.

- Current momentum is high with Spot ETF inflows, but sentiment may overestimate continuous interest.

2. Gameplan for Bitcoin Investment:

- For trading/swing trading, consider the horizon and potential risks. Assess if a 35% gain in 10 days is worth the increased correction risk.

- Investing should align with risk appetite and horizon. Waiting for a 20-40% correction before entering can help control emotions.

3. Expectations and Potential Corrections:

- Macro-economic events, reduced inflow, or other factors may trigger a correction, especially if sentiment shifts.

- Corrections, with current sentiment, could be swift and might occur around $53-58K, leading to a 20-40% drop.

In summary, while the timing of corrections is uncertain, understanding sentiment, having a strategic game plan, and being mindful of macro-economic factors can guide investment decisions in the dynamic Bitcoin market.

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