One retail trader is already predicting that bitcoin will hit $ 20, (**********************************************************************************. | Source:Twitter
The ecstatic atmosphere probably drove Alex Kruger to measure community sentiment. The trader and economist ran a poll asking Crypto Twitter (CT) what they think would be BTC’s 228226 high.
Results reveal that CT is feeling ultra bullish. That’s bad news for bitcoin.
Nearly Half of Survey Participants Believe Bitcoin Would Breach $ 30, This Year
Kruger recently ran a poll that involved the responses of over 4, 06 participants. Results show that 47. 1% believe that bitcoin would trade above $ (****************************************************************************, 06 this year. Close to 90% think the coin would settle between $ (******************************************************************************, 06 and $ (****************************************************************************, **********************************************************. The remaining (**************************************************************************% said the cryptocurrency will trade at $ (*******************************************************************************, 2019 or lower.
**************Poll results may foreshadow massive capitulation. | Source:Twitter
The survey reveals that nearly (*************************************************************************% of participants believe thatbitcoin will print gains of over (***********************************************************************% this year. Almost half see the cryptocurrency skyrocketing by over (*******************************************************************%. These are ultra bullish predictions even by bitcoin’s standards. The results tell me that it is wise to take a contrarian stance.
The Wisdom of the Crowd Is Rarely Correct
When it comes to investing, the wisdom of the herd is often wrong. This is especially true of bitcoin. The digital asset has a tendency to mislead the crowd and burn retail investors.
We saw this happen in the 2019 bull market. Many retail investors hopped on the bandwagon just as bitcoin was peaking around $ (*****************************************************************, .Countless got wiped outas the cryptocurrency entered a vicious bear market.
The Crypto Dog considering the possibility of a bitcoin drop just before the cryptocurrency skyrocketed. | Source:Twitter
These examples show that it’s prudent to look at the other side of the coin. Getting pulled by the herd is a bad trading strategy.
The Next Few Days May Spell Bitcoin’s Fate This Year
The top cryptocurrency has managed to gather significant bullish momentum this year. The bulls must step up their assault. Otherwise, the bears can quickly take over.
That’s according to Wyckoff whiz Todd Butterfield. The owner of the Wyckoff Stock Market Institutethinks that bitcoin is “at an important juncture.” Mr. Butterfield said,
If we can add on to yesterday’s gains and then extend them, I think we have a bull market starting. But if we start to give up the gains, then all bets are off. So next few days are crucial.
On the other hand, liquidity game-theorist Majin believes that bitcoin is primed for a massive capitulation. The trader told CCN,
I suspect this rally collapses back. to $ 7, soon. Then, capitulation to $ 4, (to $ 5, 06 begins.
CT’s biggest bull is painting a nightmarish picture. Considering the ultra bullish sentiment, it wouldn’t be surprising if bitcoin pulls the rug. I guess we’ll see in the next few days.
Disclaimer: The above should not be considered trading advice from CCN. The writer owns bitcoin and other cryptocurrencies. He holds investment positions in the coins but does not engage in short-term or day-trading.
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