Lorenzo Stroe
Independent Analyst
- Bitcoin price is bullish after a massive rally towards $17,000.
- The digital asset hasn’t experienced a significant pullback since September 3.
Bitcoin has just hit $17,000 for the first time since January 2018. Although the sentiment is positive, many investors are increasingly growing greedy, which can usually lead to a steep correction in the short-term.
Bitcoin investors are extremely greedy
According to the Crypto Fear and Greed Index, it seems that Bitcoin investors have become extremely greedy since November 6. History has shown that when high levels of greed are maintained for a long time, Bitcoin price tends to suffer a steep correction.
Crypto Fear and Greed chart
The last time the situation mentioned above happened was on September 2, when Bitcoin price plummeted from a high of $11,954 to a low of $9,960 within 24 hours. Before the crash, this chart was showing a lot of greed since August 2.
BTC/USD 4-hour chart
The current levels of greed are extremely high, hinting at a possible pullback in the short-term, however, this period could last for several weeks or even months. On the 4-hour chart, the TD Sequential indicator has just presented a sell signal in the form of a green nine candle in conjunction with an overextended Relative Strenght Index (RSI), which adds more selling pressure.
BTC/USD 1-hour chart
Additionally, it seems that on the 1-hour chart, the TD Sequential is also on the verge of presenting a sell signal. Validation of both signals could drive Bitcoin price towards $16,600 in the short-term.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Ripple on-chain metrics show bullish signs amidst legal struggle with SEC, XRP eyes recovery
Ripple made a comeback above $0.48 on Tuesday and hovers above that level in Wednesday’s European session. Ripple on-chain metrics such as transaction volume and Network Realized Profit/Loss have turned bullish, supporting a recovery in the altcoin.
Bitcoin price falls amidst German government transfers, miners activity
Bitcoin (BTC) extends correction on Wednesday and hovers around $61,000 after finding resistance near the $64,000 level on Monday. Recent on-chain data indicates heightened selling activity from Bitcoin miners early in the week.
Crypto Today: Bitcoin erases gains from end of June, Ethereum declines while Ripple holds
Bitcoin wipes out gains from the last week of June and falls below $60,000 on Wednesday. Ethereum and top altcoins ranked by market capitalization erased gains as the inflation outlook worsened. Ripple holds on to recent gains and hovers above $0.48 on Wednesday.
Three reasons why altcoins could shake off losses this week
On-chain data from Santiment shows that altcoins are currently in the opportunity zone, or generating buy signals. The top three altcoins in the buy zone are Basic Attention Token (BAT), Chromia (CHR), and Highstreet (HIGH), per Santiment.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.