3 Warning Signs That Bitcoin's Rise Is Exceeding Its Limit

It's a classic ecstasy setup in the markets Bitcoin Thursday is where traders flip Bitcoin Long in greater numbers than ever before.

faced Bitcoin (BTC) new doubts about the strength of its bullish run in 7 October as analysts were eyeing a possible reversal of the short squeeze on Wednesday.

Funding rates in the red

I tracked the data from the news site Cointelegraph Markets Pro And TradingView BTC / USD where hover near 54 A thousand dollars after failing to establish support at the sign 55 one thousand dollars.

The previous day witnessed a sudden rise to its highest levels at 55,700 dollar to currency Bitcoin, which was accompanied by significant buying pressure.

With funding rates turning positive across exchanges, concerns on Thursday centered on what could end up being an adverse move lower.

Funding rates that have turned overly positive indicate that the market is expecting further upside and the big value is buying Bitcoin.

Under these circumstances, a collective retreat from positions could accelerate and intensify a downward move, if initiated.

The mood among investors was echoed by sentiment data, with the Crypto Fear & Greed Index 76/100 per day, which represents "extreme greed".

Trader and Analyst Caution Rect Capital From that “investors are too greedy for Bitcoin at present".

Preparing to Take Profit from Bitcoin

while less than 10 Thousands of dollars from an all-time high, facing Bitcoin Also significant resistance levels at 58 thousand dollars and 60 A thousand dollars and more on the way back to price discovery.

As Cointelegraph reported, October is set to close slightly below the highs, while November may see a return to lower levels before the end of December erasing current records.

However, long-time market participants are already advising this week's exit strategy, including John Bollinger, creator of the popular trading indicator Bollinger Bands.

Second target achieved, $BTCUSD. UpperBB expanding with the rally. Keep a trailing stop like BBstop or a Chandelier going. All clear for now, but starting looking for signs of a top / exit. I am off for a couple of weeks of travel. Good trading! #Bitcoin

— John Bollinger (@bbands) October 5, 2021

share tracking Boulder Band The volatility of the asset is up and down and currently indicates that calmer conditions should prevail.

However, when the ranges narrow, volatility follows.

In the meantime, don't expect to check Altcoins Final cycle gains until next year.