Notable cryptocurrency observers claim that the Bitcoin market is still in disbelief at the current price rally. This, for them, is a sign that prices of crypto assets will head a lot higher during this market cycle.
Despite how agreeable such a narrative is to investors, others comment that there is a lot more optimism than pessimism surrounding the crypto market of late.
Is this the Beginning of Another Massive Crypto Bull Run?
According to several respected crypto asset analysts, “disbelief” characterises the current digital currency market. The descriptor comes from a popular image used frequently in the cryptocurrency industry.
The “Wall St. Cheat Sheet: Psychology of a Market Cycle” gets posted often by crypto industry observers on Twitter. Many observers and analysts use it to determine whether a market trend will continue or not.
The image, featured in the below tweets, shows the chart of a fairly typical bull and bear market cycle. The bullish side starts with “disbelief” (a feeling that price gains cannot last). It moves into “hope”, “optimism”, “belief”, and “thrill”, before topping at “euphoria” – during which every investor thinks they’re the next Wolf of Wall Street.
The downtrend that follows features a different set of descriptors. Complacency – a feeling that any drop is just a normal market correction – starts the decline. “Anxiety”, “denial”, “panic”, “anger”, and finally, “depression” all follow.
Can you believe Altcoins have only just started their bull market?
— Rekt Capital (@rektcapital) February 12, 2020
— Crypto Michaël (@CryptoMichNL) February 12, 2020
If the above industry analysts are correct in their assessment of how far along the market cycle is, crypto asset prices do indeed look primed for massive gains. However, a lot of observers seem in anything but disbelief.
Calls for BTC at $100,000 is a Market in “Disbelief” Now?
As more than one respondent commented on the above tweets, if you are to believe the rhetoric espoused on Twitter, a lot of investors are in anything but disbelief. One stated:
“I havent seen a single person on twitter saying we are not in a bull market. They’re actually all in FOMO mode and are all buying the top.”
Similarly, other analysts have pointed to an increased number of people in their personal lives asking about crypto investments. If the lay, non-crypto person is confident in the market, is that really a sign of disbelief?
you know it’s that time when your random acquaintances start texting you about #bitcoin
stay safe, my friends! don’t forget to DYOR and never invest more than you can afford to lose.
stay calm and stack sats 😉
— Meltem Demirors (@Melt_Dem) February 12, 2020
I'm getting random DMs and emails about buying altcoins and Bitcoin right now
The last time I got this many DMs was over $13k at the top
It's typically a clear indicator for me that it's getting close for a pullback after two months of green
I'm securing gains/taking profits
— Josh Rager 📈 (@Josh_Rager) February 12, 2020
Industry Panicked by Weekend BTC Drop
That said, Bitcoin did recently have a brief pullback. Following the weekend, prices fell below $10,000 again.
Many observers greeted the news with renewed calls for yearly lows or even worse. Respected industry analyst PlanB commented on the sudden spread of bearishness on Monday, adding that they expected to see BTC at $100,000 during 2021.
*** Update: my 2 sats on #bitcoin price:
– 2020: btc stays above $8200 (so we are NOT dropping to $6k or $4k levels that others are predicting now)
– May 2020 halving: will be above $10k
– 2021: bull run starts after the halving and tops $100k before Dec 2021#NotFinancialAdvice https://t.co/Zkkma4ZBSd
— PlanB (@100trillionUSD) February 10, 2020
The fact many were so quick to flip bearish after sustained upwards price moves in Bitcoin lends support to those analysts that reason the market is currently in the “disbelief” phase of a typical cycle. During the later stages of a bull market, a brief dip in prices is unlikely to dampen investor spirit in such a way.
Related Reading: CNBC Panel All Bullish on Bitcoin; Time to Dump Crypto?
Featured Image from Shutterstock.