Buyer Beware: Extreme Greed Is Back In Bitcoin And Crypto

News BTC

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.

BTC moving sideways in the daily as ETF debuts. Source: BTCUSD Tradingview

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.

How To Get Free Crypto  

Related Reading | TA: Bitcoin Consolidates Gain: What Could Trigger Fresh Rally

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

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”

Get 110 USDT Futures Bonus for FREE!

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.

Source: Arcane Research

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.

Coinbase Banner  

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.

Source: Arcane Research

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.

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.

FreeBitcoin Banner  

Go to Source
Author: Reynaldo Marquez


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.