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
Crypto traders brace for short-term volatility with $2.4 billion options expiry on Friday
Bitcoin and Ethereum options market looks bullish on Friday, according to data from intelligence tracker Greeks.live. The firm said it has identified two Bitcoin calls that show an underlying bullish sentiment among market participants.
XRP recovers from week-long decline following Ripple’s response to SEC motion
Ripple filed a letter to the court to support its April 22 motion to strike new expert materials. The legal clash concerns whether SEC accountant Andrea Fox's testimony should be treated as a summary or expert witness.
Lido adds 4% gains as protocol rolls out first step towards decentralization
Lido takes the first batch of simple DVT validators to live, a step taken to decentralize the protocol. Lido leveraged technology to expand the protocol to multiple node operators, inviting both solo and community stakers.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Bitcoin: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.