The Latest Surge in Crypto May Just Be Another Bear Market Fakeout

Tony "The Bull" Severino

1 year ago

3 mins read

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Crypto investors have been in this position time and time again. Bitcoin and the rest of the market has been rising, building up bullish momentum, and then what? Thus far, nearly every major rally has been nothing more than a bear market rally.

Is this time different? Or will the crypto market suffer another massive crash when the current rally comes to an end?

Current Crypto Rally Mimics Past Bear Market Fakeouts

Bitcoin and the rest of the cryptocurrency market have been stuck in a long, painful bear market for the better part of nearly three full years now – starting after the bubble popped in late 2017 and early 2018.

As times goes by, and with each failed rally, hope continues to fade. Is this latest rally different, and crypto investors are simply in disbelief, or will this latest cryptocurrency market rally turn out to be yet another bear market fakeout that leads to further lows?

According to one crypto analyst, the current rally is exhibiting similar signs as the previous bear market fakeouts, before each rally came to a conclusion.

If Surge Turns Disbelief Rally, Investors Could Be Stuck FOMOing At Higher Prices

Markets are currently in turmoil over the coming recession and the coronavirus.

It’s caused widespread selloffs in most asset classes, and cryptocurrencies like Bitcoin especially took a beating.

Bitcoin itself suffered one of the worst crashes in the asset’s history, while the rest of the market fell by over 70% in many instances.

All this after the total cryptocurrency market cap had doubled in early 2020, and Bitcoin exploded to above $10,000.

The catastrophic fall prompted by coronavirus fears has left crypto investors scorn, and possibly, in disbelief.

Bitcoin price has nearly doubled in value from the recent low set below $4,000 as the dust settled on the panic-induced selloff. Crypto valuations have been rising, but sentiment has remained in the gutter, reaching levels of extreme fear on the crypto Fear and Greed Index.

Given how fearful the market is while prices are rising, if this latest rally turns out to be different after all, and isn’t yet another fakeout, crypto investors will be left in shock when prices take off into a new bull run.

Crypto investors will need to FOMO back into Bitcoin and altcoins at much high prices, further driving up valuations.

While this scenario may seem far fetched with the current state of the market, and after so many failed rallies, however, a new uptrend will eventually begin, and the more investors are left in disbelief, the faster it will take off without them.

Featured image from Shutterstock

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.