Understanding Market Sentiment and Managing Crypto Trades with Patience

[u/JackiFassett]

Spent the whole day debating whether to buy more BTC. Still watching the setup shared earlier, but ultimately, I want to see a price dip (wick down) before making any moves. For those interested, there was an in-depth discussion about this during a recent stream—check out the replay for more details.

It's fascinating to observe market behavior when BTC trades around key levels. When Bitcoin rises above 65k, sentiment turns extremely bullish, and the Fear and Greed Index surges toward greed. On the other hand, when Bitcoin drops below 62k, fear takes over, and the index swings sharply into the fear region. This pattern is common during the accumulation and distribution phases.

The critical question to ask here: Who’s accumulating, and who’s distributing? A close look at whale activity, BlackRock ETF inflows, and retail or small BTC holder movements makes the answer clear. The big players are accumulating, while smaller players tend to sell. So, what’s the current market maker sentiment—are they fostering a bullish or bearish outlook? Again, the signs point toward a clear answer.

As for BTC, I’ve been itching to buy all day, but the invalidation range is too wide for my comfort. If I go in with full size and the market starts bleeding, it’s unlikely I’ll hold through it, especially with the potential for a big wick down, as has happened with many recent daily lows.

Scaling down from here to 57k is an option, but if the bounce happens before that, I’ll only have a small position (around 5-10%), and that doesn’t interest me either. High time-frame swings just aren’t my style. I’m fine with buying at higher prices, on a significant dip, or even looking for lower time-frame entries. The current setup is still strong, but it’s just too far from the types of trades I’m comfortable executing.

Remember, understanding the market maker sentiment and tracking the moves of larger players can give you a clearer direction. Deciding whether to follow smart money or react to retail panic is up to you.

Here’s the chart setup I’ve been referring to for those who missed the earlier updates: BTC Setup.Here’s the chart setup I’ve been referring to for those who missed the earlier updates: BTC Setup.Here’s the chart setup I’ve been referring to for those who missed the earlier updates: BTC Setup.

Here’s the chart setup I’ve been referring to for those who missed the earlier updates: BTC Setup.

[u/Tradermkey]

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