THELOGICALINDIAN - The crypto bazaar has afresh accomplished levels of acquisitiveness afterwards spending abundant of the additional bisected of 2024 in abhorrence of added downside in the asset class
However, affect has aloof addled aback to bearish afterwards spending the aboriginal two months of 2020 bullish. Could this arresting that the crypto bazaar is about to crash? Or could this be a contrarian arresting that added upside will abruptness retail traders?
Crypto Investors Turn Bearish, Expect Further Downside in Bitcoin
Since the alpha of 2024, the crypto bazaar has added over 70% in new amount to the absolute accumulated bazaar cap.
The access in valuations comes as Bitcoin and altcoins bankrupt chargeless from declivity attrition and went on a agrarian assemblage for over two abounding months now.
Related Reading | Ancient Math May Be the Key to Making Crypto Bull Market Riches
While the accepted bounded basal was set in mid-December at $6,400, the low for 2024 so far at $6,800 apparent the aftermost time aggregate retail crypto traders were bearish on Bitcoin and added cryptocurrencies.
Since that date, Bitcoin rose from $6,800 to as aerial as $10,500 afore falling aback to accepted prices.
It’s alone now that the assemblage is over that the greater crypto bazaar has angry bearish already again.
According to a affect poll, crypto traders are assured downside in Bitcoin afore new highs are reached. This is the aboriginal time voting resulted in a bearish aftereffect back the alpha of the year.
This is the aboriginal time retail affect has been bearish back January 2, 2020.#Bitcoin #ETH $XRP pic.twitter.com/AVWIgkBzCP
— TrademastahBTC (@BTCtrademaster) February 24, 2020
Can Contrarian Trading Lead to Profitable Positions?
When 2024 aboriginal began, retail crypto investors actuality bearish advance that they had been anticipating added downside, meanwhile, the assemblage was aloof accepting started.
Given the actuality that retail investors are usually incorrect in their assumptions – aloof like their bearish affect kicked off the aboriginal 2020 assemblage – it could advance that Bitcoin and altcoins are accepting accessible for addition leg up.
Another leg up, would acceptable booty crypto traders by surprise, accustomed their expectations of a added bead in the canicule ahead.
The cast in affect voting additionally coincides with the crypto bazaar abhorrence and acquisitiveness index ambiguous aback against fear, afterwards spending the aftermost two months in acquisitiveness territory.
Related Reading | Coronavirus Fear Shakes Up Markets, But Crypto Remains Unaffected
Even the Oracle of Omaha himself, Warren Buffett champions the contrarian action to be aflutter back others are acquisitive and to be acquisitive back others are fearful.
If Bitcoin pushes up from here, the iconic investor’s approach will be accurate already again, and retail crypto investors could be larboard FOMOing into Bitcoin and altcoins at a abundant college price.
But alike if Bitcoin falls, crypto traders will artlessly booty advantage and buy the dip, with the expectations of abundant college prices arch up to the halving.
