A third of portfolio managers say that they consider bitcoin to be the most crowded trade. As traditional investors see overbought indicators, the bitcoin price continues its decline.

32% of managers from investment funds of the traditional financial market consider bitcoin to be the most crowded trade. That means that they see excessive agiotage and speculations around bitcoin, which can result in the drastic price decline. Such data was obtained during Bank of America Merrill Lynch's December global fund manager survey.

In September, the share of portfolio managers who called bitcoin the most crowded trade stood at 26%. Then bitcoin traded three times lower at $4,600.

The second place of the rating of the most crowded trades is occupied by shares of American and Chinese technology companies such as Facebook, Amazon, Apple, Netflix, Google, Alibaba, Baidu, and Tencent. Shares of the above-listed US-based companies have risen by 37-60% since the beginning of the year, while Chinese companies' securities have jumped in price from 47% to 110%.

The Merrill Lynch's survey demonstrates the investors' mood toward certain assets. Their valuation of assets as most crowded trades can predict a possible market reversal and its switch to a bearish movement.

Being coincidence or not, bitcoin continued to decline overnight. In a few hours, it dropped from $18,500 to $17,275, and it dropped below $17,000 on some exchanges.