- Bearish sentiment round BTC has been on the rise.
- Bitcoin’s development charge slowed down within the final 24 hours.
Because the crypto market initiated its bull rally, traders’ expectations, particularly with Bitcoin [BTC], skyrocketed. Their hopes paid off with time, as the worth of the king coin went above the $35,000 mark for some time.
Learn Bitcoin’s [BTC] Worth Prediction 2023-24
Nevertheless, excessive confidence is commonly to be thought of a bearish indicator, because it will increase the possibilities of a worth correction.
Bearish sentiment round Bitcoin grows
In line with CoinMarketCap, Bitcoin’s worth surged by greater than 12% during the last seven days. On the time of writing, it was buying and selling at $34,323.71 with a market capitalization of over $670 billion.
Not solely did the coin’s worth improve, however its 24-hour buying and selling quantity additionally went up, which is usually thought of to be a bullish signal. Nevertheless, BTC‘s development momentum got here to a halt as the worth solely moved marginally during the last 24 hours till press time.
This occurred at a time when Bitcoin’s worry and greed index hit a price of 72, representing elevated greed out there.
Bitcoin Concern and Greed Index is 72. Greed
Present worth: $34,713 pic.twitter.com/iB6JZLk7jg— Bitcoin Concern and Greed Index (@BitcoinFear) October 29, 2023
The Concern and Greed Index is an indicator that analyzes and generates a quantity between 0 and 100, the place 1 is the indication of utmost worry and 100 is the indication of utmost greed.
Each time the index goes above 50, the opportunity of a worth correction will increase considerably. Due to this fact, contemplating the press time quantity, the possibilities of BTC experiencing a worth drop appeared excessive.
Furthermore, a more in-depth take a look at Bitcoin’s metrics revealed that traders had already began promoting their holdings on the time of writing. In line with CryptoQuant, BTC’s trade reserve was rising, mentioning that the coin was underneath promoting stress.
Bitcoin’s aSOPR was within the crimson, that means that extra traders had been promoting at a revenue – this instructed a doable market prime amidst a bull rally.
Supply: CryptoQuant
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Bitcoin traders should observe warning
Along with the above metrics, Bitcoin’s RSI was additionally in an overbought place on the time of writing. This might additional improve promoting stress on the coin and presumably lead to a drop in its worth.
Just like the RSI, the Bitcoin Cash Movement Index (MFI) was additionally hovering close to the overbought zone, rising the possibilities of a falling worth development. Nevertheless, BTC’s Chaikin Cash Movement (CMF) regarded bullish because it was score above the impartial mark.
Supply: TradingView