Signs suggest the Bitcoin price rally is overextended
It’s a classic euphoria setup on Bitcoin markets Thursday as traders flip long BTC in ever larger numbers. Bitcoin (BTC) faced fresh doubts over the strength of its bull run on Oct. 7 as analysts eyed a potential reversal of Wednesday’s short squeeze. Data from Cointelegraph Markets Pro and TradingView tracked BTC/USD as it hovered near $54,000 after failing to establish support at the $55,000 mark.
The previous day had seen an abrupt surge to highs of $55,700 for Bitcoin, which was accompanied by major buying pressure. As funding rates flip positive across exchanges, however, concerns on Thursday focused on what could end up being an opposing move lower. 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.
The mood among investors was echoed by sentiment data, with the Crypto Fear & Greed Index hitting 76/100 on the day, representing “extreme greed.” “Investors are extremely greedy towards BTC right now,” trader and analyst Rekt Capital warned.
Preparing for profit-taking
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. 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.
Nonetheless, longtime market participants are already advising an exit strategy this week, among them John Bollinger, creator of the popular Bollinger Bands trading indicator.
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. Altcoins, meanwhile, are not expected to deliver definitive cycle gains until next year.
Top Cryptocurrencies with Price Predictions
| # | Crypto | Prediction | Accuracy | CVIX | Price | 24h | 7d | Market Cap | 7d price change | |
| 1 |  BTC |
Bitcoin predictions | 76.8% | 42 | $61 168.42 | 1.56% | -7.74% | $1 208 863 783 447 |  |
|
|---|---|---|---|---|---|---|---|---|---|---|
| 2 |  ETH |
Ethereum predictions | 77.6% | 44 | $2 363.94 | 1.94% | -11.89% | $284 555 397 399 |  |
|
| 3 |  USDT |
Tether predictions | 92.4% | 1 | $0.999717 | -0.02% | -0.07% | $119 608 189 522 |  |
|
| 4 |  BNB |
Binance Coin predictions | 72% | 51 | $548.16 | 1.78% | -10.22% | $79 994 624 748 |  |
|
| 5 |  SOL |
Solana predictions | 74% | 54 | $139.68 | 3.46% | -12.80% | $65 438 871 809 |  |
|
| 6 |  USDC |
USD Coin predictions | 92.8% | 1 | $0.999890 | -0.02% | -0.01% | $35 552 716 137 |  |
|
| 7 |  XRP |
XRP predictions | 77.6% | 39 | $0.519599 | 0.32% | -12.41% | $29 390 622 034 |  |
|
| 8 |  DOGE |
Dogecoin predictions | 80% | 39 | $0.107282 | 4.49% | -15.66% | $15 687 645 053 |  |
|
| 9 |  TRX |
TRON predictions | 94.8% | 1 | $0.157265 | 1.83% | 1.38% | $13 617 488 900 |  |
|
| 10 |  TON |
Toncoin predictions | 74.8% | 49 | $5.34 | 1.91% | -11.37% | $13 522 991 190 |  |
|
| 11 |  ADA |
Cardano predictions | 78% | 42 | $0.350367 | 3.93% | -14.09% | $12 247 575 562 |  |
|
| 12 |  AVAX |
Avalanche predictions | 64.4% | 68 | $25.59 | 6.27% | -16.70% | $10 400 143 923 |  |
|
| 13 |  STETH |
Lido stETH predictions | 96% | 1 | $2 941.39 | -0.40% | -3.32% | $10 258 752 564 |  |
|
| 14 |  WTRX |
Wrapped TRON predictions | 93.2% | 1 | $0.116354 | -0.46% | 0.23% | $10 171 995 609 |  |
|
| 15 |  SHIB |
SHIBA INU predictions | 58.4% | 94 | $0.000017 | 9.27% | -19.43% | $10 127 293 790 |  |
