Bitcoin’s greed index hits 72, is a correction looming?

• Bearish sentiment round BTC has been on the rise. 
• Bitcoin’s progress price slowed down within the final 24 hours. 

Because the crypto market initiated its bull rally, buyers’ 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] Value Prediction 2023-24

Nevertheless, excessive confidence is usually to be thought of a bearish indicator, because it will increase the possibilities of a value correction.

Bearish sentiment round Bitcoin grows

In response to 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 value improve, however its 24-hour buying and selling quantity additionally went up, which is mostly thought of to be a bullish signal. Nevertheless, BTC‘s progress momentum got here to a halt as the value solely moved marginally during the last 24 hours till press time.

This occurred at a time when Bitcoin’s concern and greed index hit a price of 72, representing elevated greed out there.

Bitcoin Worry and Greed Index is 72. Greed
Present value: $34,713 pic.twitter.com/iB6JZLk7jg

— Bitcoin Worry and Greed Index (@BitcoinFear) October 29, 2023

The Worry and Greed Index is an indicator that analyzes and generates a quantity between 0 and 100, the place 1 is the indication of maximum concern and 100 is the indication of maximum greed.

Each time the index goes above 50, the opportunity of a value correction will increase considerably. Due to this fact, contemplating the press time quantity, the possibilities of BTC experiencing a value drop appeared excessive.

Furthermore, a more in-depth take a look at Bitcoin’s metrics revealed that buyers had already began promoting their holdings on the time of writing. In response to CryptoQuant, BTC’s trade reserve was growing, declaring that the coin was below promoting strain.

Bitcoin’s aSOPR was within the crimson, which means that extra buyers had been promoting at a revenue – this prompt a doable market high amidst a bull rally.

Supply: CryptoQuant

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Bitcoin buyers should follow 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 strain on the coin and probably lead to a drop in its value.

Just like the RSI, the Bitcoin Cash Move Index (MFI) was additionally hovering close to the overbought zone, growing the possibilities of a falling value development. Nevertheless, BTC’s Chaikin Cash Move (CMF) regarded bullish because it was score above the impartial mark.

Supply: TradingView