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Investor Conviction Shift

Definition

An investor conviction shift denotes a change in the collective belief among market participants regarding an asset’s future price direction. This shift can move from a bullish outlook to a bearish one, or vice versa, often triggered by significant market events, regulatory changes, or macroeconomic developments. It manifests through changes in holding patterns, trading volumes, and sentiment indicators. Such a shift can precede major market trend reversals, as a broad consensus forms around a new price trajectory.