Is Bitcoin Entering Its FOMO Phase? Recent Data Analysis

Bitcoin’s price momentum is once again drawing heightened attention, with analysts pointing to familiar patterns that have historically preceded major bull runs. One of the most notable indicators—the Relative Strength Index (RSI)—is rising on the monthly chart, suggesting renewed strength after a brief cooling period. This shift is not going unnoticed by seasoned analysts and investors alike.

According to PlanB, a well-known quantitative analyst in the Bitcoin space, the current RSI trajectory mirrors those observed before previous surges in price. Combined with strengthening institutional demand and improving macroeconomic conditions, the stage appears to be set for a possible Fear of Missing Out (FOMO) phase—a period marked by rapid price appreciation and inflows from retail investors.

Bitcoin: Key Insights from Recent Data

Several key metrics are aligning to support the idea that Bitcoin could be entering a high-momentum phase:

• Monthly RSI Nearing 75: The RSI is trending upward again, after a consolidation period. Historically, an RSI near 75 often signals the start of an extended bullish trend for Bitcoin.
  
   
• PlanB’s Analysis: Drawing comparisons to past cycles, PlanB suggests that if momentum holds, Bitcoin might even close July near the $125,000 mark—a bold projection based on technical alignment.
  
   
• 80 RSI Threshold: If the RSI breaks above 80, this would mark a technical level often associated with explosive rallies, as seen during the 2021 bull run.
  
   

These signs collectively point to the possibility that Bitcoin may be nearing the early stages of a FOMO-driven rally.

Supporting Market Conditions

Bitcoin’s fundamentals and broader market environment are also conducive to upward movement:

• Institutional Demand: Major institutions continue to show strong interest in Bitcoin, with steady inflows into ETFs and large wallet holdings remaining stable or growing.
  
   
• Macro Environment: As global inflation stabilizes and rate hikes slow down, risk-on assets like Bitcoin are regaining favor, particularly as hedges against fiat uncertainty.
  
   
• Consolidation Pattern: Bitcoin is consolidating just under its all-time highs, a behavior typically observed before breakout moves in past cycles.
  
   

These conditions create a favorable backdrop for increased capital inflows and potentially a return to euphoric market conditions.

Read  more: Bitcoin Price Dips Again

Analyst’s Cautions

Despite the optimism, there are important caveats to consider:

• Short-Term Volatility: Bitcoin remains volatile, particularly as it tests resistance levels around prior highs. Sudden pullbacks are still possible.
  
   
• No Guarantees: PlanB and other analysts stress that while current indicators are encouraging, continued momentum is crucial. Without confirmation via price and volume, the FOMO phase may remain out of reach in the near term.
  
   

The presence of cautionary signals reminds investors to balance optimism with risk management.

Conclusion

Bitcoin is showing strong signs that it may be approaching a classic FOMO market phase, driven by favorable technicals and improving macroeconomic sentiment. 

While the monthly RSI and accumulation trends provide a bullish foundation, the market still requires confirmation through price breakouts and sustained momentum. As always, investors should watch the charts closely and prepare for volatility, even as the broader outlook turns increasingly optimistic.

Read  more: 

Bitwise Prediction for Bitcoin Price: Target at $200K

How Much Bitcoin Should I Hold to Become a Whale?

Bitcoin Price USD: Momentum For Breakout Or Breakdown?

Will ECB Make the Market Volatile?

FAQ 

What is a FOMO phase in crypto?

A FOMO (Fear of Missing Out) phase refers to a period when rising prices drive mass investor interest and rapid market entry, often pushing prices even higher in a feedback loop.

What RSI level indicates Bitcoin is overbought?

Typically, an RSI above 70 suggests overbought conditions. However, in strong bull markets, RSI can remain above 70 for extended periods and still signal further upside.

Is Bitcoin expected to reach $125,000?

Analyst PlanB projects that Bitcoin could reach or close near $125,000 in July, based on historical RSI trends. While this is speculative, it reflects bullish technical conditions.

How does institutional demand affect Bitcoin’s price?

Institutional buying adds stability and legitimacy to Bitcoin markets, often leading to sustained price appreciation due to large-volume, long-term holdings.

Is it too late to invest in Bitcoin before the next bull run?

Many analysts believe Bitcoin is still in the early stages of its next cycle. However, timing entries during consolidation and breakouts is crucial for managing risk.