Bitcoin price has mostly maintained the $29,000 level for the better part of the week. This points to low activity and momentum in the market, as well as a reluctance to engage in the digital asset at this point. One reason for this reluctance is the expectation that the Bitcoin price will see another crash before the bull market resumes. However, this crypto analyst explains why expectations may be dashed this time around.<\/p>\n
Before the 2020-2021 bull market kicked in, the Bitcoin price had seen a rollercoaster year. Mostly, the bear market had ravaged the digital asset<\/a> causing it to fall more than 80% below its all-time high price at the time, and the crashes would continue well into 2020.<\/p>\n Given the tendency of the Bitcoin price to follow previous trends, investors are understandably expecting a repeat of this trend. But pseudonymous crypto analyst \u201cTony The Bull<\/a>\u201d took to X (formerly Twitter) to use the \u2018recency bias\u2019 to explain why this may not happen.<\/p>\n In the post, the crypto analyst used an analogy of a town that had not had a flood before, suddenly experiencing a flash storm rainstorm. Given that it had not happened before, businesses were caught unaware without flood insurance. However, going forward, the businesses begin to expect another flood and as such, they get flood insurance.<\/p>\n The analyst explained that even though measures would be put in place to decrease the chances of such as flood happening again, people continued to operate with the knowledge of the impact of the flood. \u201cIt is the brain\u2019s way to going with the most easily accessible information, which is the one that has most recently impacted you in a significant way,\u201d the analyst said. \u201cThis is what\u2019s called recency bias.\u201d<\/p>\n\n This recency bias, when applied to Bitcoin, shows investors are expecting a repeat of 2019-2020 because it is the most recent bear market. Hence, investors are operating with the knowledge of the most recent impactful event.<\/p>\n \u201cBut much like the flood never happened before, we had a once in a lifetime pandemic. The probability<\/a> is rather low we\u2019ll see the same price action as 2019 and 2020,\u201d Tony The Bull explains.<\/p>\n The analyst\u2019s position is backed up by the fact that the Bitcoin price has continuously deviated from historical trends during this cycle. One example is that while the digital asset\u2019s price did fall to around 70% below its $69,000 all-time high, it recovered to almost 50% below its ATH<\/a>.<\/p>\n However, a similar trend was recorded in 2019 when BTC\u2019s price recovered above $11,000 toward the middle of the year. But by the end of the year, had lost about half of those gains. With the rest of the gains being wiped out in early 2020.<\/p>\n If BTC does end up following the previously established trend though, then the digital asset\u2019s price could fall as low as $12,000 before the next bull run begins. However, it is now a waiting game to see what ends up happening.<\/p>","protected":false},"excerpt":{"rendered":" <\/p>\n Bitcoin price has mostly maintained the $29,000 level for the better part of the week. This points to low activity and momentum in the market, as well as a reluctance to engage in the digital asset at this point. One reason for this reluctance is the expectation that the Bitcoin price will see another crash before the bull market resumes. However, this crypto analyst explains why expectations may be dashed this time around.<\/p>\n Before the 2020-2021 bull market kicked in, the Bitcoin price had seen a rollercoaster year. Mostly, the bear market had ravaged the digital asset<\/a> causing it to fall more than 80% below its all-time high price at the time, and the crashes would continue well into 2020.<\/p>\n Given the tendency of the Bitcoin price to follow previous trends, investors are understandably expecting a repeat of this trend. But pseudonymous crypto analyst \u201cTony The Bull<\/a>\u201d took to X (formerly Twitter) to use the \u2018recency bias\u2019 to explain why this may not happen.<\/p>\n In the post, the crypto analyst used an analogy of a town that had not had a flood before, suddenly experiencing a flash storm rainstorm. Given that it had not happened before, businesses were caught unaware without flood insurance. However, going forward, the businesses begin to expect another flood and as such, they get flood insurance.<\/p>\n The analyst explained that even though measures would be put in place to decrease the chances of such as flood happening again, people continued to operate with the knowledge of the impact of the flood. \u201cIt is the brain\u2019s way to going with the most easily accessible information, which is the one that has most recently impacted you in a significant way,\u201d the analyst said. \u201cThis is what\u2019s called recency bias.\u201d<\/p>\n This recency bias, when applied to Bitcoin, shows investors are expecting a repeat of 2019-2020 because it is the most recent bear market. Hence, investors are operating with the knowledge of the most recent impactful event.<\/p>\n \u201cBut much like the flood never happened before, we had a once in a lifetime pandemic. The probability<\/a> is rather low we\u2019ll see the same price action as 2019 and 2020,\u201d Tony The Bull explains.<\/p>\n The analyst\u2019s position is backed up by the fact that the Bitcoin price has continuously deviated from historical trends during this cycle. One example is that while the digital asset\u2019s price did fall to around 70% below its $69,000 all-time high, it recovered to almost 50% below its ATH<\/a>.<\/p>\n However, a similar trend was recorded in 2019 when BTC\u2019s price recovered above $11,000 toward the middle of the year. But by the end of the year, had lost about half of those gains. With the rest of the gains being wiped out in early 2020.<\/p>\n If BTC does end up following the previously established trend though, then the digital asset\u2019s price could fall as low as $12,000 before the next bull run begins. However, it is now a waiting game to see what ends up happening.<\/p>\n <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[82],"tags":[],"class_list":["post-28260","post","type-post","status-publish","format-standard","hentry","category-blockchain"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/28260","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/comments?post=28260"}],"version-history":[{"count":0,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/28260\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/media?parent=28260"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/categories?post=28260"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/tags?post=28260"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}BTC Price Sticking To Previous Trends?<\/h2>\n
Bitcoin Price May Not See A Repeat Of 2019-2020<\/h2>\n
BTC Price Sticking To Previous Trends?<\/h2>\n