October once again lived up to its nickname “Uptober”. In the last days of the month the Bitcoin (BTC) significantly, almost reaching the previous all-time high (ATH) of $73,800. Despite this strong growth, the price recently fell back to $71,000, and several technical indicators raise questions about the sustainability of this increase.
Does this mean that a great disaster is approaching?
Bitcoin Investors in profit
An important indicator for a potentially overheated market is that more than 99% of Bitcoin owners are currently in profit. This can often lead to profit taking, where investors sell the BTC, which can put pressure on the price. For a constant increase in the price, it is usually necessary that the number of investors remains in balance in profit and loss.
Love in the market
As Crypto Index Fear and Greed currently at “extremely greedy” with a value of 77. This index, which ranges from 0 to 100, measures investor sentiment and is calculated based on factors such as volatility, market movement, activity social media and trading volumes. A high value indicates over-optimism, with investors willing to pay higher prices than the true value of the asset. This can cause a bubble, in which prices deviate significantly from their fair value and are vulnerable to a sharp correction.
Marks purchased
The Relative Strength Index (RSI) is also showing warning signs. The RSI measures the speed and volatility of price movements to determine whether an asset is overbought or oversold. Currently, RSI readings on the daily, 12-hour and 4-hour charts are above 70, which is often considered an overheated condition and may indicate an upcoming correction.
2024-10-31 14:45:00
#Worried #Crypto #Analysts #Hard #Crash #Coming #Bitcoin #Price
