The price of bitcoin is essentially flat from 1 year ago ($42k). And yet, the fear and greed indicator is almost EXACTLY the opposite. From 10 (extreme fear max) a day ago, compared to 90 (extreme greed max) 1 year ago.

If a random person with no knowledge of cryptocurrency saw this they would think that the markets are crazy.

It is completely normal for an asset class to have a year where it has little price action. This is actually healthy.

Now consider and contrast the two $42k price zones.

One year ago BTC had basically doubled in a few weeks. Everybody was FOMOing in. Alts were getting rekt and I recall selling my ETH for BTC because it seemed unstoppable. Extreme greed kicked in, and what happened? We got rekt, falling to 28k in a fairly short time frame - a massacre. In hindsight you were crazy to have bought that run.

And yet, now we have the exact mirror image opposite. We are talking Star Trek style, mirror dimension (Spock is evil and has a beard etc opposite). Down from $69k but at the same level, people I know are capitulating and selling or even thinking of shorting. The same folk who were desperate to get in a year ago as the bull cycle had no top.

Now in retrospect we know that (for the short term at least) - doing a FOMO buy at $42k in January last year was a bad idea. Heck, there was a guy on this sub who bought at that price and was posting about how he couldn't sleep from the lost money for the next few weeks.

We ALSO know that doing a FOMO sell at the various fear levels this year ($28k, $30k, $39k and so forth) was a terrible idea and instead buying was the plan. Equally buying at the extreme greed tops was a bad idea.

So if you treat it as a psychological war game - would it make any sense at all that now is a good time to either sell everything and walk away? Sure it could go down. It might go down a bit more yet, but the risk reward has always favored buying in extreme fear scenarios for the entire history of crypto.

And as a final point, it looks like funding finally flipped negative. So those short position holders who have suffered over the last few days are now paying long positions for the privilege, despite losing a bucket of money.

PS if you are keen on some hopium I have a telegram channel that is just for posting hopium stuff like this (coin neutral - no shills or anything). It is t*dot*me/hopiumchannel (the dot is a .) I did that a weird way as I think it will block my post otherwise.