Bitcoin
BTC$57 125.03

1.84%

Ethereum
ETH$3 256.32

1.07%

Tether
USDT$1.000514

0.03%

Binance Coin
BNB$398.06

-0.14%

Solana
SOL$108.72

-1.46%

XRP
XRP$0.578854

4.33%

Signs suggest the Bitcoin price rally is overextended


07 Oct 2021

#Bitcoin

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.


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Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 65.2% 77 $57 125.03 1.84% 10.16% $1 121 917 971 187 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 62.4% 80 $3 256.32 1.07% 9.26% $391 249 577 993 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 94.8% 1 $1.000514 0.03% 0.05% $98 441 517 000 USDT 7 days price change
4 Binance Coin (BNB) BNB Binance Coin predictions 67.2% 70 $398.06 -0.14% 12.35% $59 527 517 481 BNB 7 days price change
5 Solana (SOL) SOL Solana predictions 79.6% 40 $108.72 -1.46% 2.19% $48 108 110 616 SOL 7 days price change
6 XRP (XRP) XRP XRP predictions 82.4% 29 $0.578854 4.33% 4.70% $31 602 076 437 XRP 7 days price change
7 USD Coin (USDC) USDC USD Coin predictions 94% 1 $0.999964 0.01% 0% $28 534 837 343 USDC 7 days price change
8 Cardano (ADA) ADA Cardano predictions 67.6% 66 $0.620017 -0.62% 2.74% $21 995 107 432 ADA 7 days price change
9 Avalanche (AVAX) AVAX Avalanche predictions 72.8% 52 $39.33 -0.13% 4.39% $14 836 058 547 AVAX 7 days price change
10 Dogecoin (DOGE) DOGE Dogecoin predictions 84.8% 27 $0.095642 5.26% 12.56% $13 701 198 520 DOGE 7 days price change
11 TRON (TRX) TRX TRON predictions 68% 63 $0.143274 1.71% 2.21% $12 607 201 135 TRX 7 days price change
12 Wrapped TRON (WTRX) WTRX Wrapped TRON predictions 66.8% 61 $0.143060 1.86% 2.23% $12 588 400 022 WTRX 7 days price change
13 Chainlink (LINK) LINK Chainlink predictions 76.4% 43 $18.98 -0.62% 0.27% $11 141 726 258 LINK 7 days price change
14 Polkadot (DOT) DOT Polkadot predictions 74.8% 50 $8.26 1.56% 10.00% $10 609 272 807 DOT 7 days price change
15 Lido stETH (STETH) STETH Lido stETH predictions 92% 1 $2 941.39 -0.40% -3.32% $10 258 752 564 STETH 7 days price change

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