Buyer Beware: Extreme Greed Is Back In Bitcoin And Crypto
19 Octubre 2021 - 10:36AM
NEWSBTC
Bitcoin rallies as the first Exchange Traded Fund (ETF) launched by
ProShares debuted in the NYSE. The first cryptocurrency by market
cap trades at $62,908 with 2% and 9.5% profits in the daily and
weekly charts, respectively. The general sentiment in the market
flipped bullish as October made its entry, historically a green
month for Bitcoin. Traders and operators seem to expect a fresh
all-time high in the near term driven by fresh capital coming into
the market via the BTC ETF. Related Reading | TA: Bitcoin
Consolidates Gain: What Could Trigger Fresh Rally At press time,
ProShares’ product has seen a $280 million in trading volume.
Senior ETF analyst for Bloomberg Intelligence Eric Balchunas claims
this makes the Bitcoin ETF part of the top 15 at opening day in
terms of trading volume with the potential to become number one if
it surpasses $1 billion during the day. The Fear and Greed
indicators have moved to the upside as a consequence of recent
events and Bitcoin’s performance. Per an Arcane Research report,
The Fear and Greed Index signaled “extreme greed” for the past two
weeks. Related Reading | The On-Chain Metric That Says Bitcoin
Is About To Go “Parabolic” This indicator usually fluctuates at
high levels when the crypto market hypes over an event, such as the
debut of exchange Coinbase on the public market. In addition,
Arcane Research claims Bitcoin experienced a similar phenomenon in
2020 when the bull-run to $64,500 began. As a potential positive
signal for the bulls, on-chain activity seems to be on the rise as
shown by the slight increase in transaction fees on the BTC
network. As NewsBTC reported, experts believe this suggests
institutional demand for the digital asset is returning. Bitcoin
Sees Increase In Demand, More Upside Imminent? In support of this
theory, Arcane Research records a climb in BTC spot volume. As seen
below, this metric saw a sharp decline in May and July, as BTC’s
price kept on falling. It started to recover by August and has
continued to trend upwards. Related Reading | Bitcoin Price
Smashes Record For Highest Weekly Candle Close Ever BTC’s trading
volume stood at $7.2 billion during October’s second week with the
15th of this month recording a $12 billion intraday volume, Arcane
said, the biggest in the past 6 months. The firm said: The same
day, the bitcoin price increased by 7.6%, showing how the biggest
daily volumes coincided with the most significant increases in the
price. These developments signal a renewed interest in bitcoin
after a sleepy summer. In the short term, traders could see a rise
in volatility due to the BTC ETF effect on the market. The
derivatives sector seems to be getting overheated with the Open
Interest (OI) points to an uptick in leverage positions. 2/ OI in
BTC futures is nearing its all-time high. OI growth reflects an
increase in leverage. However, when the price of an asset is
increasing, OI measured in USD is bound to go up. FTX, Binance,
Bitfinex, and CME all hit their highest level of OI in the last few
days. pic.twitter.com/mXpbIb3UJc — Delphi Digital (@Delphi_Digital)
October 18, 2021 As with the Coinbase debut, too much leverage
could lead to a liquidation-driven short squeeze. Whether it will
favor the bulls or bears, that remains to be seen.
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