Bitcoin (BTC) faced fresh doubts over the strength of its bull run on Oct. 7 as analysts eyed a potential reversal of Wednesdays short squeeze.<\/p>\n
Data from Cointelegraph Markets Pro and TradingViewtracked BTC\/USD as it hovered near $54,000 after failing to establish support at the $55,000 mark.<\/p>\n
The previous day had seen an abrupt surge to highs of $55,700 for Bitcoin, which was accompanied by major buying pressure.<\/p>\n
As funding rates flip positive across exchanges, however, concerns on Thursday focused on what could end up being an opposing move lower.<\/p>\n
Funding rates turning overly positive suggest that the market is expecting further upside and that significant value is long BTC. Under such circumstances, a mass unwinding of positions could hasten and intensify a downward move, should it begin.<\/p>\n
The mood among investors was echoed by sentiment data, with the Crypto Fear & Greed Index hitting 76\/100 on the day, representing extreme greed.<\/p>\n
Investors are extremely greedy towards BTC right now, trader and analyst Rekt Capital warned.<\/p>\n
While under $10,000 from all-time highs at one point, Bitcoin additionally faces significant resistance levels at $58,000, $60,000, and more on the way to returning to price discovery.<\/p>\n
Related:Price spike: Are whales front-running the approval of a Bitcoin futures ETF?<\/p>\n
As Cointelegraph reported, October is slated to close just below the highs, while November could see a return to lower levels before a December finale obliterates current records.<\/p>\n
Nonetheless, longtime market participants are already advising an exit strategy this week, among them John Bollinger, creator of the popular Bollinger Bands trading indicator.<\/p>\n
Bollinger bands track upward and downward volatility of an asset and are currently hinting that calmer conditions should prevail. When the bands narrow, however, volatility follows.<\/p>\n
Altcoins, meanwhile, are not expected to deliver definitive cycle gains until next year.<\/p>\n
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Link: Bitcoin (BTC) faced fresh doubts over the strength of its bull run on Oct. 7 as analysts eyed a potential reversal of Wednesdays short squeeze. Continue reading
\n3 warning signs suggest the Bitcoin price rally is overextended - Cointelegraph<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"