Traditional finance investors who want exposure to bitcoin could fall victim to the anchoring bias and intuitively wait for cheaper entry prices. That’s because, in conventional markets, assets rarely double in value in less than a year. Besides, investors, in general, are vulnerable to loss aversion, a cognitive behavior of booking out of winning trades early and holding on to loss-making bets for longer.
Believing in the aforementioned cognitive biases, however, could prove costly as three indicators – tracking activity on the Bitcoin blockchain, miner flows, and the 200-day moving average – suggest the cryptocurrency has plenty of upside left.