It’s been an interesting and confusing year for Bitcoin price, with the crypto asset bottoming out in $3,100 at levels of extreme fear and panic, then in just a few months growing 350% and once again causing talk of moonshots and Lambos across the market.
In fact, during the most recent “echo bubble” as it’s being called, the perceived value of Bitcoin exceeded that of the peak 2017 crypto bubble mania. However, price fell short of setting new high alongside the lofty price perception, and one analyst says that data point looks “bad” for Bitcoin, and says that prices of $2020 in the year 2020 aren’t that “crazy.”
Bitcoin Perceived Price Value Reaches Crypto Bubble Levels
After a stellar year for Bitcoin, bringing investors who bought the bottom over 350% in gains from trough to peak, the crypto market has once again turned bearish. Following the top of the 2019 parabolic rally back in June, the market has slowly returned to a state of fear, panic, and despair.
But it was only a short time ago, that Bitcoin was trading above $10,000 and talk of riches and $1 million dollar BTC became commonplace once again. It was as if crypto investors suddenly forgot about a full year of bear market, and all of the pain it caused.
The irrational exuberance can be seen via the sentix Strategic Bias index, which assigns a score measuring the perceived price value of Bitcoin. The metric outpaces the hype and bias surrounding the peak of the 2017 crypto bubble, however, price failed to set a new high as well.
This looks bad…
The perception of value for #bitcoin exceeded the 2017 mania this year but price did not.
A change in perception like 2018 will likely drag the price down much further than the majority expect.
$2020 in 2020 doesn’t seem crazy to me. pic.twitter.com/8G8vQWxaQA
— EX (@icoexplorer) November 29, 2019
The analyst who first called attention to this “bad” looking metric says that for “perception of value to exceed the previous levels and price fall short” it says “that selling pressure was so high,” and claims that that “hopium addict” crypto investors “provided liquidity” for boomers to unload their bags at a lot higher prices.
Because price perception so greatly outpaced the actual price in 2019, the analyst says that seeing prices of $2020 per BTC in the new year wouldn’t be “crazy.”
Calls For New Lows At Recent Top Would Be Called “Crazy,” Not So “Crazy” Anymore
Given how exuberant crypto investors were at Bitcoin’s recent peak, any talk of prices of $2,000 Bitcoin would have been met with much confrontation, calling such claims “crazy,” especially considering how quickly the first-ever crypto-asset ran up from the then bottom at $3,100.
Now, that fear has returned to the market, and Bitcoin is trading at prices back around the $6,000 range it has already once broken down from, thinking that the bottom isn’t in and Bitcoin could reach prices around $2020 in 2020, doesn’t sound so crazy anymore.