Bitcoin: Extreme fear among investors could signal that a turnaround is imminent
Bitcoin (BTC) has been stuck in the midst of its immense volatility in the last few days and weeks. Now the recent sideways trading has led to a massive move that caused maximum pain for traders.
This volatility has coincided with investors '”extreme fear” signaling an impending bullish turnaround, which may be driven by analysts' expected volatility surge.
Bitcoin falls to $ 7. is then driven by bulls to $ 7.
At the time of writing, Bitcoin trades at the price of 7 Its daily lows of just over 7. reached yesterday's clearance.
This sell-off has led many analysts and investors to believe that another downtrend is imminent. Eventually, this led to a strong upswing that caused the cryptocurrency to move up to highs of 7 2019 $ perform.
From that point on, Bitcoin has retreated slightly to its current price level – and its inability to sustain the upturn has challenged the long-term importance of this rally.
Popular Twitter crypto analyst Hsaka, for example, believes that crypto markets, and Bitcoin in particular, will soon see strong volatility. Hsaka:
“$ BTC: Stop at . 7680 reinterpreted. Think I'm done with swing trading for a while, so volatility will rise again. “
Extreme fear among investors – an optimistic sign?
In addition to analysts' expected volatility, it should be noted that investors are currently expressing extreme fears that have historically been counter-traded by investors.
Mr. Anderson, another popular Twitter cryptocurrency analyst, also thinks that this market sentiment could be an optimistic sign for Bitcoin. Mr. Anderson on this:
However, the combination of Extreme Fear with Funding, which shows a week's worth of shorts willing to pay a premium, is a set-up suitable for disciplined CounterTrend trades. Inexperienced people should stay outside. “
Should the bulls be able to maintain the upside momentum that was triggered as BTC at 7 800 $ rose – then the crypto-father could be ready for further short-term gains.
Text Proof: newsbtc