Is the bear market coming back? This new poll doesn’t shed light on Bitcoin’s chances in 2020
Is the bear market coming back? This new poll doesn't shed light on Bitcoin's chances in 2020
The results of a survey shed new light on Bitcoin’s perspective for 2020.
2020 has been a great year for Bitcoin (BTC) so far. The cryptocurrency has seen massive momentum that allowed it to recover from a low of $ 6,800 to a high of $ 8,900 before encountering significant resistance there.
This recovery has dramatically changed the general mood among crypto investors, prompting many to assume that the markets will see significant upside in the near future.
This positivity among crypto market participants is now highlighted in a survey by an economist specializing in cryptocurrencies – and it could pose difficulties for BTC for the rest of 2020.
BTC rally shows signs of stagnation as investors become extremely bullish
Markets tend to trade in a way that causes maximum pain to traders.
When investors become ultra-bullish on an asset, bears can use the over-leveraged long positions as fuel to perpetuate a downward movement – and vice versa.
For this reason, many savvy traders fall back on a classic Warren Buffett quote. That means you have to be scared when others are greedy – and greedy when others are scared.
The rally observed by Bitcoin in recent weeks has sparked greed among many investors due to the astronomical price targets. Many market participants believe that a move into the five-digit price range is imminent.
However, this sentiment could be unjustified as Bitcoin recently encountered insurmountable resistance at $ 8,900, which has kept BTC at its current price level around $ 8,600 since then.
The majority expect BTC to close the year over $ 20k. That’s a problem
In a recent Twitter survey by crypto economist Alex Krüger, over 47 percent of the 4,079 participants said they believe BTC will end the year “over $ 20,000”. However, only 14.8 percent voted for Bitcoin to end the year “under $ 11,499”.
If Bitcoin hadn’t rallied in the first few weeks of 2020 and was still trading below $ 7,000, chances are these results would diverge drastically.
With investors expecting an overwhelming upward move, the markets are very likely to see another downward move – with the bulls stepping in to reverse the downward trend when investors least expect it.
Bitcoin, currently # 1 in market cap, has risen 3.17% in the last 24 hours. BTC has a market capitalization of $ 162.39 billion with a 24-hour volume of $ 34.40 billion.