Bullish Case For Bitcoin: Profit Taking Turns Into Buying The Blood

Wednesday 16 September 2020, 1:50 PM AEST - 1 week ago

Bitcoin price recently saw a $2,000 correction after months straight of surging. At the start of the selloff, signs pointed to profit-taking as the primary reason for the pullback. However, after greed turned to fear, big-money investors have begun buying the blood right out from under investors who are panic-selling the cryptocurrency at a loss.

Heres why this is incredibly bullish for Bitcoin and what this could mean for a new uptrend taking hold.

Bitcoin Whales Buy The Blood As Small Time Investors Panic Sell At a Loss

The crypto market has been on fire in 2020, and although other crypto assets have outperformed Bitcoin, it too has done well for itself.

Bitcoin remains the most profitable mainstream investment of the year next to gold, stocks, and anything else. But a recent over $2,000 crash turned the ultra greedy market into a fearful one.

Contrarian investing strategies recommend selling when markets are at peak greed and then buying when most fearful. That strategy would have proven well over the last few weeks when the crypto market Fear and Greed Index reached record highs.

Smart money investors taking profit caused the selloff initially, as depicted by the green moving profit average below. But smart money may now be buying the blood in the streets as contrarian Baron Rothschild suggested.

bitcoin buying blood

Profit-taking has turned into buying the fear and panic of those who cannot control their emotions, and are selling their Bitcoin at a loss – represented by the red line just recently crossing above the green.

Note how during each major crash, more investors are selling at a loss than in profit. Meanwhile, during each top, investors are taking profit instead of panic-dumping below entry.

But after such an enormous fa ...

Read full story on NewsBTC