Poll: Crypto Sentiment Too Bearish, BTC Contrarian Movement Comes – After a strong rejection of the level of $ 14,000, the Bitcoin (BTC) parabolic rally was in danger of being erased, especially the latest steps between the level of $ 10,000 and $ 14,000 before the flash crash occurred which knocked down crypto exchangers and reduced BTC prices by $ 2,000 in just minutes.
Following a strong rally from lows around the level of $ 3,000 to local heights of $ 14,000, a substantial correction is still expected by most analysts. However, when the crypto market is too Bearish, the price of Bitcoin often moves in the opposite direction, doing the opposite (contrarian) of what traders and analysts expect. With most markets expecting a deep correction below the $ 10,000 level, one must wonder whether Bearish targets will ever be reached.
A poll on Twitter highlights current crypto merchant sentiments on the internet. When the poll was launched, Bitcoin traded at the level of $ 10,600. During live, the price of Bitcoin feels below $ 10,000 and has returned around the price level near where the Polling was originally launched, and the Polls only tend to be more Bearish as a result.
The majority of traders expect a correction to as low as $ 8,400 before other efforts at the level of $ 12,800 are made. With the Bitcoin rally stalling on track at $ 14,000, crypto analysts, traders and investors alike expect a deeper correction than average, and prepare their purchase orders for “Buy the Dip”.
Except, when sentiment is too Bearish, and the market is expected to move in a certain direction, it usually often moves opposite, because a clearer direction is more crowded and less profitable trading.
At the time of the press, Bitcoin prices rose 9.4 percent to 160 million or $ 10,734 in 24 hours, according to CoinGecko .
This kind of event is the definition of short extortion. Traders expect a downward movement, so they open short positions. However, when prices move against their position, they are forced to close their Short positions, which naturally increases prices. Traders who first enter positions create opportunities for larger entities to counter-trade against them.
If the majority of crypto traders expect to buy Bitcoin at a low price of $ 9,000, $ 8,000, $ 6,000 – and a target of $ 3,000 or lower that is out there – that might never happen, and traders might be stuck watching prices take their gains back. without them, forcing them to FOMO and repurchasing later and raising the price even higher.
This kind of tactic works best at the start of the Bullish market when sentiment is still recovering from Bearish trends. Traders are accustomed to falling prices, and selling at the top which drives the opposite action to be higher and higher.
If Bitcoin can break the level of $ 14,000, the main obstacle above is the previous all-time high of $ 20,000. After Bitcoin breaks the previous high level, all bets will be canceled and everything may happen from there. Let’s wait and see.