technical analysis

Why is Cardano (ADA) price up this week?

ADA price had gained nearly 80% in a month and data suggests the rally could continue.

Cardano (ADA) recorded an impressive 43% gain in the seven days leading up to Dec. 14, reaching its highest level since May 2022. The rapid increase to $0.64 has pushed Cardano’s market capitalization to $22.7 billion, an interesting point to note, as it matches the valuation of Danske Bank (DANSKE.CO), Denmark’s largest bank, which serves over 5 million retail customers.

While ADA’s market cap is quite impressive, it’s essential to recognize that decentralized protocol valuations differ significantly from traditional financial assets. Traditional assets rely on generating revenue to cover expenses, including financing costs and operational overhead. On the other hand, Cardano is a decentralized protocol, so its market capitalization does not depend on sales and earnings. Nevertheless, it’s important to analyze the potential reasons behind ADA’s price increase to determine if further gains are possible.

Constructing a narrative for Cardano’s recent success is relatively straightforward, but pinpointing the specific events responsible for the 70% gain in December is more challenging. For instance, a post on the social network X by user @matiwinnetou brilliantly highlights the driving factors behind this bullish momentum.

Why is Cardano price up today?

Cardano price continues its rebound move in December, with ADA price up 75% already as altcoins catch up to Bitcoin’s rally.

The price of Cardano (ADA) jumped over 19% to $0.64 on Dec. 9, its highest level in 18 months. It’s up 75% in December alone.

Cardano’s recent gains did not accompany any groundbreaking fundamentals. Instead, they appeared on the cryptocurrency market catching up to Bitcoin (BTC) this month.

Notably, Bitcoin’s crypto market dominance has declined 3.5% from its Dec. 6 local peak, indicating that many traders have been rotating capital out of the Bitcoin market to seek profit opportunities in altcoins. That has benefited Cardano, whose market share has jumped over 46% since Dec. 6.

Why is XRP price up today?

XRP’s price has gained over 4.5% in the past 24 hours amid speculations of Ripple’s reduced settlement costs to the U.S. SEC.

The price of XRP (XRP) is up today, rising nearly 4.5% in the last 24 hours to a three-week high of $0.65. In result, it has outperformed the broader crypto market, whose returns in the last 24 hours came to be about 1%.

XRP’s price gains in the last 24 hours come amid anticipations about Ripple reducing its potential settlement costs in its pending lawsuit against the U.S. Securities and Exchange Commission (SEC).

Notably, the SEC and Ripple remain in a remedies-related discovery process over the latter’s $770 million worth of XRP sales to institution investors. Ripple aims to reduce potential settlement costs by more than 50%, citing the Morrison vs. National Australia Bank case.

Warning sign for ETH price? Ethereum volume profile is down 90% since March 2020

Ether’s 78% price recovery since July 2022 is at risk of exhaustion due to an unconvincing volume profile.

The price of Ethereum’s native token, Ether (ETH), has recovered 78% since June 2022. But this doesn’t guarantee further upside, particularly with declining trading volumes suggesting that the risk of a major correction is high.

Ether volume profile drops 90% since March 2020

A “volume profile” indicator displays trading activity across prices, with the blue indicating buying volume and the yellow indicating sell volume.

*Illustration of a volume profile bar. Source: TradingView*

In March 2020, when the market bottomed , Ether’s volume profile on a weekly chart showed about 160 million ETH trades across the $85–$270 price range. At the time, the selling volume was greater than the buying volume by around 4 million ETH.

But Ether buying volume regained momentum after ETH price rallied above $270 in July 2020.

Notably, between July 2020 and November 2020, the Ether volume profile displayed about 64.25 million ETH trades across the $270–$450 range, with buying volume exceeding selling volume by almost 1 million ETH.

*ETH/USD weekly price chart. Source: TradingView*

The price-volume trend remained largely synchronous with one another until November 2021, when ETH/USD reached its record high at around $4,950.

In other words, most traders purchased Ether as its price climbed, illustrating their confidence in the longevity of the bullish reversal that followed the March 2020 crash.

However, that confidence is missing in the 2023 Ether market rebound.

2022 ETH price bottom differs from two years ago

At first, the Ether volume profile at the beginning of it price recovery in June 2022 from $900 shows 12.50 million ETH trades, down more than 90% from March 2020.

But despite a 75% price recovery, fewer traders have been participating in Ether’s potential bottom this time around when compared with the beginning of the 2020 bull market.

What’s further concerning is the rising sell-volumes during the current ETH price rebound.

For instance, the red horizontal line in the daily chart below, dubbed the “point of control,” or POC — which represents the area with the most open trading positions — shows a net 8.21 million ETH volume of around $1,550, with sellers exceeding buyers by 170,000 ETH trades.

*ETH/USD daily price chart. Source: TradingView*

In other words, ETH’s ongoing price recovery might not have the legs it did in March 2020, especially when coupled with the overall volume profile decline over the past two years.

Most Ether investors are still in profit

More downside cues for Ether come from one of Ethereum’s widely monitored on-chain metrics that tracks the percentage of ETH’s circulating supply in profit.

As of March 6, about 65% of ETH was bought at a lower price. In other words, investors’ probability of securing profits remains high in the event of a significant price drop.

*Ether circulating supply in profit. Source: Glassnode*

Therefore, Ether price could see the real bottom if the supply in profit falls below 30% (green zone), which would reflect previous market cycles and the March 2020 bottom, as shown in the chart above.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

‘Stupid money’ Ethereum investor loses over $2M in six months — 3 lessons to learn

How can traders learn from common investment mistakes and reduce their market risks accordingly?

An anonymous Ethereum investor has lost more than $2 million trading Ether (ETH) since Sep. 9, 2022, on-chain data shows.

Buying Ethereum high, selling low

Spotted by on-chain monitoring resource Lookonchain, the “stupid money” trader spent $12.5 million in stablecoins to buy 7,135 ETH after it rallied 10% to $1,790 in September 2022. But a subsequent correction forced the trader to sell the entire stash for $10.51 million.

*Ethereum investor’s transaction history from September 2022. Source: Lookonchain*

As a result, the trader lost nearly $1.75 million. Interestingly, waiting and selling at today’s price would have resulted in a smaller loss of $1.14 million.

1/ Please don’t blindly follow the trend to buy $ETH after the price rises for a period of time, and don’t panic sell after the price drops.

A stupid money who loses more than 2M $USDC in half a year will tell you how dangerous this behavior is.

— Lookonchain (@lookonchain) February 22, 2023

The investor’s trades reemerged in February as ETH price had risen by approximately 10%. Data shows that $7.65 million in ETH was acquired on Feb. 16, only to sell it eight hours later as ETH price dropped, resulting in a loss of another $324,000.

*Ethereum investor’s transaction history from February 2023. Source: Lookonchain*

3 Ethereum investment lessons to learn

Traders can use such examples to learn from others’ mistakes and reduce their investment risks with proven strategies. Let’s take a look at some of the most basic tools that can help reduce losses.

Don’t rely on just one fundamental

The investor first traded stablecoins for ETH on Sep. 12, just three days before long-awaited transition from proof-of-work (PoW) to proof-of-stake (PoS) via the Merge upgrade.

The Merge, however, turned out to be a “sell-the-news” event. Thus, going extremely bullish on Ether based on one strong fundamental was a poor decision.

Moreover, going all in while relying on one indicator, particularly a widely-anticipated news event, is often a losing strategy, which is why traders should consider multiple factors before making a decision.

*Ethereum fund outflows picked momentum ahead of the Merge. Source: CoinShares*

For instance, one such metric was institutional flows. Ether investment funds suffered outflows worth $61.6 million a week before the Merge, according to CoinShares’ weekly report, suggesting that “smart money” was leaning bearish.

Hedge with put options

Hedging with options in Ether trading enables investors to purchase options contracts opposite their current open positions. Therefore, investors could mitigate risk by opening a put option contract against their bullish spot.

A put option gives a holder the right, but not the obligation, to sell ETH at a predetermined price on or before a particular date. So, if the spot Ether price drops, the investor could sell the asset at a pre-agreed price, thus protecting himself from losses in ETH’s value.

Don’t go all-in; check momentum

Do not put all your eggs in one basket regardless of how much capital you can throw around.

Instead, entering position in increments could be a safer strategy while keeping some funds on the sidelines. Thus, traders can buy ETH during a short or long term bull run but can spare some capital to buy during potential dips, while relying on multiple technical indicators for cues.

For instance, momentum oscillators like the relative strength index (RSI) reveals whether Ether is oversold or overbought on specific timeframes. So a strategy of going long when the RSI reading is close or above the 70 and forming a lower high has a high chance of failure.

The Ethereum daily chart below shows the two instances when the abovementioned investor bought ETH alongside the RSI forming a lower high.

Ultimately, traders’ mistakes can serve as opportunities to learn what works for an investor and what doesn’t. The main takeaway is that investors should enter a market with a definite plan based on their own analysis and risk appetite.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

‘Stupid money’ Ether investor loses over $2M in six months — 3 lessons to learn

How can traders learn from common investment mistakes and reduce their market risks accordingly?

An anonymous Ethereum investor has lost more than $2 million trading Ether (ETH) since Sept. 9, 2022, on-chain data shows.

Buying Ether high, selling low

As a result, the trader lost nearly $1.75 million. Interestingly, waiting and selling at today’s price would have resulted in a smaller loss of $1.14 million.

1/ Please don't blindly follow the trend to buy $ETH after the price rises for a period of time, and don't panic sell after the price drops.

A stupid money who loses more than 2M $USDC in half a year will tell you how dangerous this behavior is.

— Lookonchain (@lookonchain) February 22, 2023

The investor’s trades reemerged in February as ETH price had risen by approximately 10%. Data shows that $7.65 million in ETH was acquired on Feb. 16, only for it to be sold eight hours later as ETH price dropped, resulting in a loss of another $324,000.

3 Ether investment lessons to learn

Don’t rely on just one fundamental

The investor first traded stablecoins for ETH on Sept. 12, just three days before the long-awaited transition from proof-of-work to proof-of-stake via the Merge upgrade.

The Merge, however, turned out to be a “sell-the-news” event. Thus, going extremely bullish on Ether based on one strong fundamental was a poor decision.

Hedge with put options

Don’t go all in; check momentum

Do not put all your eggs in one basket regardless of how much capital you can throw around.

Instead, entering a position in increments could be a safer strategy while keeping some funds on the sidelines. Thus, traders can buy ETH during a short- or long-term bull run but can spare some capital to buy during potential dips, while relying on multiple technical indicators for cues.

For instance, momentum oscillators like the relative strength index (RSI) reveal whether Ether is oversold or overbought on specific timeframes. So a strategy of going long when the RSI reading is close to or above the 70 and forming a lower high has a high chance of failure.

The Ethereum daily chart below shows the two instances when the above-mentioned investor bought ETH alongside the RSI forming a lower high.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Bitcoin can hit $40K before BTC price sees ‘harsh correction’ — analyst

BTC price action heads lower on the day, but strength is still there beyond the short term, says Michaël van de Poppe.

Bitcoin (BTC) faced selling pressure at the Feb. 21 Wall Street open as United States’ stock markets opened down.

*BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView*

BTC price skids lower with US stocks

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD dipping to daily lows of $24,324 on Bitstamp.

Bearish signals were already in for the pair after it saw swift rejection during its latest attempt to flip $25,000 to support.

Amid suspicions over whale movements on exchanges, monitoring resource Material Indicators concluded that the 200-week moving average (MA) at $25,100 needed to become support for Bitcoin to change its long-term trend.

“IMO, until we see full candles above the 200 WMA this is still distribution in a bear market rally, and with the bid wall above $24k, shorting from this level has about as much short term risk as longing,” it wrote in part of comments in its latest Twitter update.

An accompanying chart of the Binance order book showed liquidity moving closer to spot price prior to the Wall Street open.

*BTC/USD order book data (Binance). Source: Material Indicators/ Twitter*

Caleb Franzen, senior market analyst at Cubic Analytics, meanwhile had a bearish prognosis for the S&P 500 in particular, with risk asset performance still liable to weigh on crypto.

“The S&P 500 is gapping lower, trading decisively below my $4,080 line in the sand,” he summarized alongside a chart on the day.

“A retest of the 200-day moving average cloud is likely, which will be a vital support level.”

*S&P 500 annotated chart. Source: Caleb Franzen/ Twitter*

The S&P 500 was down 1.3% at the time of writing, while the Nasdaq Composite Index was 1.7% lower.

The U.S. dollar index (DXY), despite being broadly inversely correlated with stocks and crypto, also took a hit at the open, dropping to 103.77 before rebounding.

*U.S. dollar index (DXY) 1-hour candle chart. Source: TradingView*

“USD higher highs and lows have held through much of Feb. 103.82 as support in DXY, current higher-low,” part of commentary from trader and stategist James Stanley read.

Stanley additionally noted the minutes from the Federal Reserve’s Federal Open Market Committee (FOMC) as a potential market catalyst. Due on Feb. 22, the minutes reflect the February FOMC meeting, as a result of which the Fed raised its key interest rate by 25 basis points.

BTC price corrections “relatively shallow”

Adopting an optimistic short-term view, meanwhile, Cointelegraph contributor Michaël van de Poppe, CEO and founder of trading firm Eight, was confident that the current dip would be a temporary one.

“Markets correcting, which is great for people who look for entry points. Might go down a bit more from here before we’ll turn around. Week of consolidating before continuation,” he told Twitter followers.

“FOMC minutes tomorrow as well. Remember, investment wise, still super cheap for Bitcoin.”

Chart analysis from Van de Poppe showed BTC price action acting within a narrowing wedge construction, with a key area of support below stretching to $22,500.

The day prior, his longer-term forecast called for higher highs before a more substantial correction, this nonetheless still apt to take Bitcoin back to $20,000.

“Corrections remain to be relatively shallow. I think that we’ll continue the run towards $35-40K before we’ll have a harsh correction, maybe even to $20-25K. Maximize profits, start allocating towards $USDT the higher we come, buy on the correction in second half of 2023,” he wrote.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Bitcoin can hit $40K before BTC price sees ‘harsh correction’ — Analyst

BTC price action heads lower on the day, but strength is still there beyond the short term, says Michaël van de Poppe.

Bitcoin (BTC) faced selling pressure at the Feb. 21 Wall Street open as United States’ stock markets opened down.

BTC price skids lower with U.S. stocks

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD dipping to daily lows of $24,324 on Bitstamp.

Bearish signals were already in for the pair after it saw swift rejection during its latest attempt to flip $25,000 to support.

An accompanying chart of the Binance order book showed liquidity moving closer to spot price prior to the Wall Street open.

Caleb Franzen, senior market analyst at Cubic Analytics, meanwhile, had a bearish prognosis for the S&P 500 in particular, with risk asset performance still liable to weigh on crypto.

“The S&P 500 is gapping lower, trading decisively below my $4,080 line in the sand,” he summarized alongside a chart on the day.

“A retest of the 200-day moving average cloud is likely, which will be a vital support level.”

The S&P 500 was down 1.3% at the time of writing, while the Nasdaq Composite Index was 1.7% lower.

The U.S. Dollar Index (DXY), despite being broadly inversely correlated with stocks and crypto, also took a hit at the open, dropping to 103.77 before rebounding.

“USD higher highs and lows have held through much of Feb. 103.82 as support in DXY, current higher-low,” part of commentary from trader and stategist James Stanley read.

BTC price corrections “relatively shallow”

Adopting an optimistic short-term view, meanwhile, Cointelegraph contributor Michaël van de Poppe, CEO and founder of trading firm Eight, was confident that the current dip would be a temporary one.

“FOMC minutes tomorrow as well. Remember, investment wise, still super cheap for Bitcoin.”

Chart analysis from van de Poppe showed BTC price action acting within a narrowing wedge construction, with a key area of support below stretching to $22,500.

The day prior, his longer-term forecast called for higher highs before a more substantial correction, this nonetheless still apt to take Bitcoin back to $20,000.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

A ‘snap back’ to $20K? 5 things to know in Bitcoin this week

Bitcoin sees split opinions as major $25,000 resistance combines with early signs that all is not well with the BTC price rally.

Bitcoin (BTC) starts the last week of February in a volatile mood as a crucial area of resistance fails to break.

After a classic “fakeout” during low-volume weekend trading, BTC/USD is back below $25,000, with bulls still lacking momentum.

The largest cryptocurrency saw what looked like the next stage of its 2023 recovery last week, making swift gains and even tapping new six-month highs.

The good times were not to continue, however, and February’s progress has been much slower and hard won than January’s 40% gains. How will the rest of the month pan out?

A critical monthly close is due, along with a potential external price trigger in the form of minutes from the United States Federal Reserve.

Meanwhile, Bitcoin network fundamentals are due to leap to yet another all-time high, with miners in full recovery mode.

Cointelegraph takes a look at these factors and more in an overview of BTC price perspectives for the final week of February.

RSI “bearish divergence” causes alarm

After a mostly calm start to the weekend after days of macroeconomic data reactions, Bitcoin woke up late Sunday to rise back above $25,000.

However, this was not to last, and as Cointelegraph reported, signs on exchange order books pointed to manipulative moves by large-volume traders.

A subsequent comedown after the weekly close took BTC/USD below $24,000 before a bounce back to the same levels as Saturday, where the pair still traded at the time of writing, according to data from Cointelegraph Markets Pro and TradingView.

For traders, there was natural cause to be wary.

“Not paying much attention to weekend PA.. BTC typically saves its meaningful moves for US stock market hours,” Crypto Chase wrote in part of a Twitter summary.

Monitoring resource Material Indicators initially flagged the order book activity, queried how long the phenomenon might continue with bulls powerless to make inroads higher.

Do you think support will hold at the notorious bid wall to play the range again or will it spoof and dump?

Remember #TradFi Markets are closed Monday. If you’re playing the game with Notorious B.I.D., manage your risk accordingly. pic.twitter.com/ZyZlHTMFWM

— Material Indicators (@MI_Algos) February 19, 2023

An additional chart of the Binance order book confirmed that major bid support, known as a “bid wall,” had moved lower to $23,460, giving the spot price room to drift lower.

Fellow trader and analyst Matthew Hyland admitted that it was “really hard to tell” whether Bitcoin could break higher on short timeframes.

Holding the area around $22,800 in the event of a pullback, followed by the key breakout, however, “wouldn’t surprise me,” he said on the day.

*BTC/USD annotated chart. Source: Matthew Hyland/ Twitter*

More concerned about the rally’s strength was Venturefounder, a contributor to on-chain analytics platform CryptoQuant.

In a Twitter thread, he warned that external factors such as “macro weakness” could have an immediate bearish impact on crypto markets.

“Bitcoin bearish RSI divergence continues… Almost the exact opposite way of the May–July 2021 period. I think any macro weakness can have BTC snap back to $19-20k real quick,” part of the comments stated.

Venturefounder referenced the Relative Strength Index (RSI) metric, which measures how overbought or oversold an asset is at a given price point. In 2021, RSI was increasing versus a BTC price correction, subsequently ending in current all-time highs of $69,000 in November that year.

All eyes on FOMC minutes and U.S. dollar

What form that “weakness” on macro markets might take remains to be seen.

The upcoming week holds considerably fewer potential macro triggers than the last, with a sprinkling of U.S. data releases, including personal spending in the form of the Personal Consumption Expenditures Index (PCE).

However, the event on most crypto pundits’ radar is the release of the minutes from February’s Federal Open Market Committee (FOMC) meeting at the Fed.

This was where the latest benchmark interest rate hike was decided, with expectations that Fed Chair Jerome Powell included talk of a moratorium on rate hike policy, if only theoretically.

“We also have FOMC minutes releasing on Wednesday where Powell will describe what a rate hike ‘pause’ could look like,” Crypto Chase mentioned about the event.

“Middle of upcoming week is where I start considering swing entries.”

However, not everyone is convinced that the FOMC minutes will be plain sailing. Among them is financial market research resource Capital Hungry, which this week warned that “sneaky hawkish revisions” may be revealed.

“Feds sneak in hawkish revisions out of the spotlight (not an active FOMC) with market already adjusted to CPI revisions and Jan report. PCE data feeds into elevated inflation sentiment,” it argued in part of the Twitter commentary.

Any return of inflationary tendencies would boost U.S. dollar strength, which spent the last macro trading day of the previous week erasing prior gains.

Matthew Dixon, founder and CEO of crypto rating platform Evai, spelled out the bearish scenario for the U.S. Dollar Index (DXY) in what would be a bullish tailwind for risk assets, including crypto.

Looking the look of #DXY so far. If we are already on the way down to complete the Y wave then this will be positive for #Btc #Eth #Crypto and risk assets in general #Evai pic.twitter.com/9OEHTG1d1v

— Matthew Dixon – CEO Evai (@mdtrade) February 20, 2023

Analyst: moving average “cloud” is there to be broken

As Cointelegraph continues to report, Bitcoin bulls have a problem, which is becoming increasingly evident on short timeframes — the 200-week moving average (WMA).

A classic “bear market” trend line, the 200WMA has acted as resistance since the middle of 2022, with BTC/USD spending more time below the level than ever before.

Reclaiming the level would mark a conspicuous achievement, but all attempts have been met with flat rejection so far.

“If Bitcoin manages to break above the 200-week MA cloud, which is becoming increasingly likely, we’re going to see a lot more TradFi coverage of crypto again,” Caleb Franzen, senior market analyst at Cubic Analytics, summarized at the weekend.

Franzen additionally showed the levels at stake in the short term, with $25,200 the ceiling needing a breakout.

Short-term levels that #Bitcoin keeps wrestling with… pic.twitter.com/Qmx9UBKyht

— Caleb Franzen (@CalebFranzen) February 19, 2023

The “cloud” he referred to involves more than just the 200WMA — Bitcoin’s 50WMA is currently at $24,462, coinciding with the current spot price focus.

Additionally, asks on exchange order books are stacked around the 200WMA, increasing the challenges in flipping it from resistance to support.

In research published on Feb. 18, Franzen described the WMA cloud as one of “two major signals to add more bullish fuel to the fire” alongside the realized price.

“BTC was rejected on this dynamic range for the first time in August 2022 and was briefly rejected on this level earlier in the week. Will it be able to break above on this second attempt?” he queried.

*BTC/USD 1-week candle chart (Bitstamp) with 50, 200MA. Source: TradingView*

Hash rate, difficulty in line for fresh record highs

In a familiar silver lining, Bitcoin’s network fundamentals are keeping the bullish vibe firmly intact as the month draws to a close.

The next automated readjustment will see difficulty adding an estimated 10% to its current tally. This will cancel out the previous readjustment’s modest decline to send difficulty to new all-time highs.

*Bitcoin network fundamentals overview (screenshot). Source: BTC.com*

This is a crucial yardstick for gauging Bitcoin miner sentiment, as such significant increases suggest corresponding advances in competition for block subsidies.

It comes on the back of increasing coverage of so-called “ordinals” fees, with miner profitability clearly recovering after months of pressure.

*Bitcoin miner net position change chart. Source: Glassnode*

Data from on-chain analytics firm Glassnode bears this out. Miners have begun retaining more BTC than they sell on rolling monthly timeframes, reversing a trend of net sales in place from mid-January.

Raw data from MiningPoolStats meanwhile shows Bitcoin network hash rate also preserving its upward trend, remaining at over 300 exahashes per second (EH/s).

*Bitcoin hash rate raw data chart (screenshot). Source: MiningPoolStats*

“Unstoppable!” commented economist and analyst Jan Wuestenfeld about the phenomenon as its 30-day moving average climbed to new all-time highs of its own last week.

Joe Burnett, head analyst at Blockware, described hash rate growth as “truly relentless.”

“The 14 day moving average of total global hash rate now sits at ~ 290 EH/s. Bitcoin miners are scavenging the Earth for cheap, wasted, excess energy,” he added alongside Glassnode figures.

Longtime Bitcoin market participants will recall the once popular phrase, “price follows hash rate,” which postulates that a large enough hash rate uptrend has inevitable bullish implications for BTC price action.

Most “greed” since Bitcoin all-time highs

$25,000 is a headache for reasons beyond solid resistance — breaking above it could be an unsustainable move for Bitcoin.

The latest findings from research firm Santiment suggest that crypto market sentiment becomes too greedy around those multimonth highs.

“Bitcoin’s 8-month high yesterday came with a great amount of euphoria,” it commented on a chart showing social media activity.

“Perhaps a bit too much, as the positive commentary on social platforms may have created a local top. Just as the negative commentary on Feb. 13th likely contributed to the bottom.”

*Bitcoin sentiment annotated chart. Source: Santiment/ Twitter*

The phenomenon is also visible on altcoins, with Santiment singling out Dogecoin (DOGE) as a key example this month.

“This pattern of social volume and highly positive sentiment toward Dogecoin perfectly illustrates how euphoria creates price tops. Regardless of your opinion on DOGE, hype on this asset in particular historically foreshadows market corrections,” it concluded.

The ever-popular Crypto Fear & Greed Index meanwhile shows “greed” as the overriding sentiment flavor across crypto this week.

The push to the highs for Bitcoin coincided with a reading of 62/100 for the Index, marking new highs since the November 2021 push to $69,000 on BTC/USD.

*Crypto Fear & Greed Index (screenshot). Source: Alternative.me*

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Top 11 greatest investors of all time

Discover the top 11 greatest investors of all time who have achieved unparalleled success in the financial world.

Learning from the greatest investors of all time can provide valuable insights into successful investment strategies and philosophies. Their success stories and experiences can inspire and guide new investors. Studying their methods can help individuals develop their own investment approach and improve their chances of achieving success in the financial world.

Here are the top 11 investors of all time. Learn about the investment strategies and philosophies that have made these individuals some of the most successful investors in history.

Warren Buffett

Warren Buffett, chairman and CEO of Berkshire Hathaway, is known as the “Oracle of Omaha,” has a net worth of over $108 billion, and is widely considered the most successful investor of the 20th century, with a long-term, value investing approach. Being a value investor means that he looks for companies that are undervalued by the market.

Buffett believes in keeping onto his investments for a long time since he is a long-term investor. He has famously said, “Our favorite holding period is forever.” He looks for companies with a “moat, which is a sustainable competitive advantage that makes it difficult for other companies to compete.

George Soros

Founder of Soros Fund Management, known for his aggressive currency speculation and “breaking the Bank of England” trade in 1992, Soros has a net worth of $8.6 billion and is known for his philanthropic work and political activism.

Reflexivity, which is the notion that market conditions are influenced by both subjective perceptions and interpretations of that reality as well as by actual fact, is one of Soros’ key investment principles. This means that biases and cognitive limitations among market players may skew how they perceive the market, creating feedback loops that may intensify current market trends. According to Soros, investors can better predict and profit from market swings by understanding the reflexive nature of markets.

Additionally, he promotes the concept of “margin of safety,” which holds that investors should only buy assets that are substantially undervalued in comparison to their real value. This reduces the possibility of substantial losses for investors, especially in the face of unforeseen circumstances or market unrest.

Peter Lynch

Former manager of the Fidelity Magellan Fund, Lynch is widely regarded as one of the most successful mutual fund managers of all time, with an annualized return of 29.2% from 1977 to 1990.

One of Peter Lynch’s key investment principles is to “invest in what you know.” Lynch believes that because individuals can spot investment possibilities in their daily lives, individual investors have an advantage over institutional ones. Individual investors might spot prospective investment possibilities that others might pass up by keeping an eye on the businesses and products they use and are familiar with.

Benjamin Graham

Known as the “father of value investing,” Graham authored the seminal investment book, The Intelligent Investor, and mentored Warren Buffett.

Value investing, which entails purchasing stocks that are currently trading at a discount to their intrinsic value, is the cornerstone of Graham’s investment philosophy. Graham thought that rather than paying attention to short-term market fluctuations, investors should concentrate on a company’s fundamentals, such as its management, financials and competitive position.

John Paulson

John Paulson, founder of Paulson & Co., is known for his $15-billion bet against the U.S. housing market in 2007, which netted him $4 billion and went down as one of the largest trades in financial history.

Paulson is a hedge fund manager known for his investment philosophy of making concentrated bets on macroeconomic trends. He believes in using in-depth research to identify mispricings in the market and using derivatives to amplify returns. He also focuses on investing in undervalued companies with strong fundamentals.

Ray Dalio

The founder of Bridgewater Associates, Ray Dalio is the head of one of the world’s largest hedge funds and is known for his “Principles” approach to management, which has been adopted by many successful investors and businesses.

Dalio is a hedge fund manager known for his investment philosophy of “radical transparency” and “principles-based” decision-making. He supports fostering an environment in which everyone is encouraged to express their ideas and opinions in an open and honest manner. To make better decisions in the future, Dalio also thinks that a set of guiding principles should be established. His investment strategy is centered on macroeconomic trend identification, risk management and diversification.

Carl Icahn

Founder of Icahn Enterprises and known for his activist investing approach, Carl Icahn has made significant investments in companies such as TWA, Texaco and Blockbuster and has a net worth of over $16 billion.

Icahn’s investment philosophy involves taking large stakes in undervalued companies and using his influence as a shareholder to push for changes that will unlock value for investors. He is known for his aggressive style and willingness to engage in proxy battles to push for changes in company management and strategy.

Jesse Livermore

Considered a pioneer in technical analysis, Jesse Livermore is known for his successful bets on the 1929 stock market crash and the 1907 Panic.

Livermore’s approach to investing included placing bets based on market movements, utilizing technical analysis to spot market trends, and adhering to tight risk management guidelines. He had a reputation for being able to predict market changes and place successful transactions based on his analyses.

David Einhorn

Founder of Greenlight Capital and known for his short-selling approach and successful bets against Lehman Brothers and Allied Capital, David Einhorn has a net worth of over $1 billion.

Einhorn’s investment style involves finding mispricings in the market through in-depth research and using a value-oriented approach to investing. He is known for his ability to identify companies with undervalued assets or growth potential and take a long-term perspective on his investments.

Jim Simons

Founder of Renaissance Technologies and known for his use of quantitative trading strategies, Jim Simons has a net worth of over $25 billion and is a prominent philanthropist. Simons’ investment strategy involves using mathematical models and quantitative analysis to identify patterns and generate trading signals.

Philip Fisher

Known for his “scuttlebutt” approach to investing, Fisher authored the influential investment book Common Stocks and Uncommon Profits and mentored many successful investors, including Warren Buffett.

He believed that the ideal way to find businesses with long-term growth possibilities is to perform an in-depth study of their management, industry position and competitive advantages. Fisher also underlined the value of making investments in businesses that have a strong focus on innovation and research and development.