- 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
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC declines as resistance emerges near all-time high
Bitcoin and Ethereum are approaching their key support levels, and a sustained close below these marks could lead to further declines.
TON set to launch synthetic Bitcoin to boost its DeFi solutions
TON revealed its plan on Thursday to launch a synthetic Bitcoin token on its blockchain, allowing users to trade, stake, and earn yield using BTC. Following the announcement, TON is down over 3%.
Maker Price Forecast: MKR could stage 40% rally
MakerDAO is up 2% on Thursday and could be set for a 40% rise in the coming weeks if it successfully maintains an extended move above the descending trendline of a falling wedge. On-chain data also supports the bullish outlook after a four-month-long decline.
USDT market cap crosses $120 billion as stablecoins continue their uptrend
The stablecoin market cap continued its uptrend in October, characterized by USDT reaching a $120 billion market cap, according to a CCData report on Thursday. This indicates that investors are preparing liquidity to fuel more demand.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.