Extreme Fear Amongst Investors May Signal That a Trend Shift is Imminent

Bitcoin (BTC) has been firmly caught within the throes of immense volatility over the past several days and weeks, with its recent bout of sideways trading ultimately resulting in a massive movement that caused a maximum pain scenario for traders.

This volatility has come concurrently with “extreme fear” amongst investors, which may be a counter-trading signal that means a bullish shift in trend is imminent, and this may be perpetuated by a rise in volatility that is expected by analysts.

Bitcoin Dropped to $7,000 Before Bulls Propelled it to $7,800 

At the time of writing, Bitcoin is trading up just under 3% at its current price of $7,520, which marks a notable climb from its daily lows of just over $7,000 that were set in the midst of a major sell-off experienced by the cryptocurrency yesterday.

This sell-off – which had led many analysts and investors to believe further downside was imminent – ultimately resulted in a strong bounce that led the cryptocurrency to post an…