Yesterday the bearish sentiment and disgust with the cryptocurrency sector reached such a fever pitch that I decided it would be an interesting time to do a poll. At yesterday's low Bitcoin had dropped ~$1600 (~21%) in the last week. While undoubtedly painful for longs an objective glance at the chart, set against the backdrop of extreme bearish sentiment might have inspired a shrewd trader to take a punt on the long side:
Bitcoin (Daily)
Bitcoin was trading at $6,250 at the time I posted the following Bitcoin poll on Twitter last night:
Given the downside price momentum the results of the poll are not terribly surprising. However, if one considers the current extreme bearish sentiment and the fact that the $6,000 area represents strong support, $7,500 is probably the more logical choice. But market sentiment isn't about logic, it's about momentum and herd psychology; the stage is now set for a snapback rally that will surprise the bearish herd.
SentimenTrader posted a Bitcoin sentiment chart this morning that confirmed we are in the midst of one of the most extreme bearish sentiment moment's in Bitcoin's history:
I'm not saying that this is the time to go all-in on Bitcoin, however, it's definitely time to become less pessimistic.
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