IS THE RECENT MARKET FLASH CRASH THE END OF THE BULL RUN?

THE BATTLE BETWEEN SUPPLY AND DEMAND!

Let’s review.. what drives the market? It’s the combinations of our emotions of Fear & Greed + Price actions by Supply and Demand..

Recently, there is not much demand on bitcoin as we can see on a decreasing rally.. supply came in and has won, crashing the price of the bitcoin and the whole crypto market.

But the big question is, how are we going to bring back the demand??…

Thru a healthy correction! A pull back is necessary to get the demand we need until we hit the demand zone. Once demand zone is hit, buyers will start accumulating driving the price back higher.. This has been true based on the markets history. In fact, every month since January 2021, bitcoin has been having around -20% corrections followed by a rally.

In context: (price drops -> shake out weak hands, value will be seen by big money -> price will rise, weak hands will fomo back in for a more parabolic move!)

But too much speculation will drive the market to peak and force the demand away which will end the bull market cycle, similar to what happened in 2017.

Going back to the present time..

We can see a extreme greed index which means there is more room to be greedy again! (Buy the dip!)

I personally don’t believe that we are in the end of the bull market 2021. Especially knowing the fact that we have not seen the crypto laggards pump yet and no signs of speculative price movements that can lead to the bubble. We are still in the middle of all of it and i am still expecting a parabolic run that will come at any time!

“Be fearful when others are greedy and greedy only when other’s are fearful” — Warren Buffet

-Aaron Villa

Follow A1PHA Trading & Investing!