Bitcoin (Bitcoin) Faces new doubts about the strength of its October 7 bull market, as analysts expect Wednesday’s shorts to be reversed.
Funding rate in the red area
Data from Cointelegraph Markets Pro with Transaction view After failing to establish support at the 55,000 USD mark, BTC/USD hovered around 54,000 USD.
The day before, Bitcoin suddenly soared to a high of $55,700, accompanied by huge buying pressure.
However, as the financing interest rates of various exchanges turned positive, concerns on Thursday focused on the eventual decline in the opposite situation.
The capital interest rate has become too positive, indicating that the market is expected to rise further, and that BTC has important long-term value. In this case, a large number of liquidation may accelerate and exacerbate the downtrend if it starts.
The sentiment data echoes the sentiment of investors, Crypto Fear and Greed Index It reached 76/100 that day, which means “extreme greed”.
“Investors are very greedy for BTC now,” trader and analyst Rekt Capital warn.
Ready to take profit
Although it was less than US$10,000 from the historical high at one time, Bitcoin still faces major resistance levels of US$58,000 and US$60,000 in the process of returning to price discovery.
related: Price surge: Did the whale preemptively approve the Bitcoin futures ETF?
As Cointelegraph Report, October closing price will be slightly lower than the high point, and November may return to a lower level before the end of December and breaking the current record.
Nevertheless, long-term market participants have been suggesting exit strategies this week, including John Bollinger, the creator of the popular Bollinger Bands trading indicator.
The second goal is achieved, Bitcoin USD. UpperBB expands with the rise. Keep trailing stops, such as BBstop or chandelier. Everything is clear now, but start looking for signs of top/exit. I left for a few weeks of travel. Good deal! #Bitcoin
— John Bollinger (@bbands) October 5, 2021
Bollinger Bands track the upward and downward volatility of assets, implying that there should be a calmer situation at the moment. However, when the band narrows, volatility follows.
At the same time, altcoins are not expected to achieve clear cyclical returns until next year.
