A discussion ensued between Adam Samson, global head of FastFT at the Financial Times, Tom Lee, co-founder of Fundstrat Global Advisors, and Black Moon Research, an Independent research company on May 29, 2019. The trio hinted on what could possibly happen if Bitcoin gets to the $10,000 price level.
Discussion on Bitcoin’s degree of FOMO Using Fundstrat’s Chart
The discussion between the trio began when Adam Samson tweeted a Fundstrat chart depicting Bitcoin’s degree of FOMO. While remarking on the graph, Samson said we are heading straight to a full-blown FOMO in the Bitcoin market.
— Adam Samson (@adamsamson) May 29, 2019
A closer look at the chart shows three levels of degree of FOMO, at what price range each level occurred in the past, and the percentage of days it was seen. Accordingly, a “level 1 degree of FOMO or baby” which occurs in 8 percent of days was triggered when Bitcoin hit $6,950. “Level 5 or medium FOMO” which is seen in only 5 percent of days was initiated when the virtual asset traded around is $8,350.
Specifically, level 5 degree is comparable to that of 2017 where Bitcoin was trading around $3,200 before its spike to a “level 10 or full-blown FOMO” once its price incremented to $4,500. Around $4,500 is where the 2017 bull run began which landed Bitcoin’s price at its all-time high.
Tom Lee Comments His View
Tom Lee who commented on the tweet pointed out that the essence of the chart is to inform that real FOMO in the Bitcoin market will begin once the asset trades above $10,000. According to him, it is because this price level is only seen in 3 percent of days and the price is what triggered the FOMO in 2017.
Actually the point of the chart is to say “real FOMO” probably starts when #bitcoin exceeds $10,000 as that is a price level only seen 3% of all days…
…mathematically equivalent to exceeding $BTC $4,500 in 2017
Looking back, that price was a level that indeed triggered FOMO
— Thomas Lee (@fundstrat) May 29, 2019
Another member of the discussion was Black Moon Research who stated that retail investors will start accumulating Bitcoin once it gets to $10,000 and buy all the way to $50,000.
When $50,000 price mark is reached, then there could be another major dump in price to $10,000 which will earn Bitcoin the “dead” and “scam” tag again. Black Moon Research, however, noted that until the average person finally understands Bitcoin, the digital asset still has room to grow.
Like Black Moon Research, a cryptocurrency enthusiast was also of the same stance when they outlined that $10,000 could trigger more media exposure and another hype cycle. Nonetheless, hodlers are the ones saving up the virtual asset for brighter days.
Bitcoin’s recent price movement has caused a lot of uproar in the market with many like John McAfee and Arthur Hayes, co-founder of BitMEX believing that higher is where we can go from here onwards. Others are a bit skeptical that a crash is imminent due to the overbought level of the Bitcoin’s relative strength index (RSI).