Bitcoin seems to be currently in a somewhat precarious situation, as he struggles to overcome the resistance of up to $ 12,000 – which makes the whole crypto market is in turmoil.
This resistance has led Bitcoin to a sharp selloff that dropped the price in the direction of 11,300 $ reel. The bulls rose, finally, and slowed the descent.
Despite the stock Bitcoin ends-dynamics has the strong upward trend of many of the smaller digital assets, let the investors get greedy: the “fear and greed has reached – Index” of the crypto-market levels, since the market-wide rally has not been observed in the summer of 2019.
Some investors see this as a counter-indicator, suggesting that a strong “market adjustment” is imminent.
Bitcoin shows that with increasing resistance, signs of weakness
Last Saturday, the Bitcoin rose to a High of $ 12,000, before he had to give lost its momentum and a strong decrease took place, which left him on for $ 11,000 decrease.
This eventually led to a multi-week consolidation phase within the upper for $11,000-Region, where the Coin has been traded up for the weekend, as a further rejection of 12,000 $ for a sell-off triggered.
The crypto-currency to trade at just under 11.500 $, where the cops trying to defend themselves against further price declines.
This has triggered in the entire market shock waves, with remarkable losses in many major Altcoins.
The key level to watch in the near future, is about 11.000 USD, because This is a support region, which was defended several times lately.
Crypto-investors are greedy, and this is bad for BTC
The “fear and greed Index” of the crypto market has now reached a level not observed since the end of June 2019.
Image courtesy of Arcane Research
At the time, in the past year, the markets had reached their peak, and many analysts consider this Index as a counter-indicator.
If history repeats itself, then Bitcoin could experience in the near future, a remarkable downturn.
Arcane Research after which write about it in the latest edition of your weekly report,…
“August has been influenced by ‘Extreme greed’. The fear and greed Index is now at 84, after it has risen for the first Time in over a year over 80. Since most of the Coins cut in the last time, well, it is easy to get carried away. As last week has shown, are these “Extreme greed”-periods historically of short duration. Trade careful.“
Important: The “fear and greed Index” has the mood of the investors during the parabolic rally in 2017, followed – but if that had been the case, he would be likely to show greed on a much higher level than is currently the case.
You should not look at the indicator as the crucial aspect of whether a rally can go further or not.