Retail Crypto Sentiment Flips Bearish For 1st Time In 2020

The cryptocurrency market reached levels of greed after spending much of the second half of last year in fear of further downside in the asset class. However, the latest cryptocurrencies news show that the retail crypto sentiment has just flipped back to bearish after spending the first two months of 2020 bullish.

Is this a signal that the crypto market is nearing a crash? Or is this a contrary signal that more upsides will follow?

Since the start of 2020, we can see that the market has added more than 70% in new value to its total aggregate market cap. The increase in valuations comes as Bitcoin and other altcoins broke free from downtrend resistance and initiated a wild rally that has been lasting for over two full months now.

While the local bottom was set in mid-December at $6,400, the low for 2020 is so far at $6,800 – marking the last time collective retail crypto traders were bearish on Bitcoin and other cryptocurrencies.

Since the date, BTC rose from $6,800 to as high as $10,500 and the retail crypto sentiment increased. The leading coin is now back to current prices and it is only now that the rally is over that the greater crypto market has turned bearish once again.

A sentiment poll shows that traders are expecting downsides in Bitcoin before the new highs are reached. This is the first time that voting results in a bearish outcome since the start of the year.

#BTC

This is the first time retail sentiment has been bearish since January 2, 2020.#Bitcoin #ETH $XRP pic.twitter.com/AVWIgkBzCP

— TrademastahBTC (@BTCtrademaster) February 24, 2020

The flip in sentiment voting would see BTC growing back again. It could also suggest that Bitcoin and altcoins are getting ready for a new leg up. This would take crypto traders by surprise given their expectations of a deeper drop in the days to come.

Right now, the retail crypto sentiment shows that if the BTC price pushes up from here, the iconic investor’s theory will be proven once again and retail crypto investors could be left FOMOing into Bitcoin and altcoins at a higher price.

Currently, the Bitcoin price news show that BTC is at $9,417 with a 3.15% loss on the day, inspiring many other altcoins to also drop and shed a couple of percentage points off their current prices.