Bitcoin Could Be Giving 2021 Flashbacks

Been reading lots of articles and blogs about Bitcoin online and it's making me alittle nervous. I sincerely love how far crypto, especially the king BTC has come over the years, but I still remember the 2021 hype like it was yesterday. For those who've been in the game for long, hope you remember when Bitcoin hit $65K, then came crashing down. Only regret I had is I didn’t sell in time, and I learned the lesson in a painful way. Well at least not too painful because whiles I lost a few thousands, some lost millions.

According to some recent articles, 2025 could be déjà vu.

Bitcoin at this point is pushing six figures again, and everyone holding before the pump is happy. But if you look closely, you'd noticed some signs that reminds much of what happened four years ago.

There’s something called RSI

That stands for Relative Strength Index and it tells us if Bitcoin is being bought too much or sold too much. Right now, according to coindesk.com article by Olivia Knight, the RSI is showing something called bearish divergence which simply means that while the price is going up, the RSI is going down, more like the energy behind the rise is getting weaker, even though it looks strong on the outside.

Another thing is trading volume.

Whenever you hear trading volume it's simply talking about how much an asset is being bought and sold. Back in January this year when Bitcoin first went over $100K, lots of people were trading so the volume was very high. But now, according to what I'm reading online, even though the price is still high, fewer people are trading. That could mean excitement is fading, which also is not so good a sign. Mind you, that's controlled by sentiments of the people so it could change even whiles I'm typing this blog on my phone.

Last is open interest in Bitcoin futures.

Okay I learned about this term yesterday although I have owned Bitcoin for some years now. Like I have been saying I'm not a trader, but because I have to put together articles, it's pushing me to learn so many things. What I learned is open interest is simply how many big investors are betting on Bitcoin’s future price. So obviously when open interest goes down but the price stays up, it means fewer people are confident the price will hold.

But the story may be different this time.

Although most are predicting 2021, I believe it may not repeat itself. Why is because we’ve got institutions and ETFs involved. Yet, and there's a big yet, because these institutions can quietly pull the plugs and the individual retail investors (you and I) will be on the painful side of the pendulum.

So my advice is, whether it will repeat or not, learned to take profits and not just hope. If you're in it for the long haul and have money taking care of your family's daily expenses then just turn off the TV and do your thing. J

ust HODL for some years.

I want to say lastly that if you’re new to Bitcoin, I’m not here to scare you, I only want you to know this: *even the strongest of markets can fall, and sometimes, the signs are there, you just have to pay attention.

Thanks for reading to the end. I'm Ricky, and I enjoy sharing my views. If you appreciate what I do and want to support me, join me as I build a long-term stake on Hive. Give this blog a sweet upvote, and my future self will thank you for it. Best wishes!

Image was created by me, analysis where due to what I read online, Incase of any inaccuracies be kind to let me know.

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