Fear and Greed Index<\/a> remains in a state of extreme fear, showing that this very well could be the disbelief rally that leaves burned and beaten investors in its dust, as the asset class takes off to new highs.<\/p>\nFeatured image from Shutterstock<\/pre>\n","protected":false},"excerpt":{"rendered":"The crypto market is on fire this week, with Bitcoin price exploding well above $7,000 and the rest of the market outperforming the leading crypto by market cap. However, even though prices are taking off across the market, according to the Fear and Greed Index, the market is still in extreme fear. One crypto analyst says that prices rallying while investors are fearful is suggests the market is in a classic disbelief phase and following should be the first signs of hope of a sustainable long-term recovery in the digital asset class. What Phase Is the Crypto Market Cycle In? Crypto analysts have long argued over what stage of a classic market cycle the market is in. All markets are cyclical in nature, and the crypto market is no different. Financial markets and even crypto assets go through regular, alternating periods of uptrend and growth, followed by downtrend and decline. Related Reading | Despite Cryptocurrency Market Recovery, Sentiment Is Still Extremely Fearful\u00a0 During these cycles, investors experience specific sets of emotions depending on where they are in each cycle. For example, when a top is near, and a cycle is about to peak, investors tend to be irrationally exuberant in their expectations for continued growth. At that stage, investors often think they’re somehow a genius, and are about to strike it rich. They are blinded by their portfolio numbers increasing by the day and don’t see the collapse coming right in front of them. The inverse is true at the bottom. Classic Disbelief Phase Could Leave Investors Behind When Bitcoin Takes Off Crypto investors have been mentally conditioned to expect more downside, have become fed up with the asset, and have lost hope for a recovery. This is called the disbelief stage and sneaks up on unsuspecting investors who have often have just been shaken out during a downtrend. As the asset begins to pick up positive momentum once again, investors ignore the signals that an uptrend is starting. They simply don’t believe the recovery is real or will have legs, and don’t take a position. Sooner than later, the asset has taken off on a powerful rally, and investors must FOMO-buy back into the asset at a higher price than they would have liked to, because they ignored the early signs that a recovery was taking place. Related Reading | Is the Coronavirus The Black Swan Event That Crushes Cryptocurrency? Bitcoin and the rest of the crypto market has nearly doubled since the extreme low set back in mid-March, meanwhile, the crypto market Fear and Greed Index remains in a state of extreme fear, showing that this very well could be the disbelief rally that leaves burned and beaten investors in its dust, as the asset class takes off to new highs. Featured image from Shutterstock<\/p>\n","protected":false},"author":517,"featured_media":420208,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[5651,3],"tags":[428,1144,6664,75675,1558,61534,54405],"class_list":["post-420201","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin","category-news","tag-bitcoin","tag-btcusd","tag-crypto","tag-crypto-market-fear-and-greed-index","tag-cryptocurrency","tag-fear-and-greed-index","tag-market-cycle"],"acf":[],"yoast_head":"\n
Peak "Fear" Crypto Market Shows Big Bitcoin Recovery is Imminent: Analyst<\/title>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\n\n\n\t\n\t\n\t\n