Bitcoin (BTC) raised new doubts about the strength of the bull market on October 1.
Financing rates are in the red zone
According to data from Cointelegraph Markets Pro and TradingView, the BTC / USD pair fell to around $ 54,000 after failing to convert $ 55,000 in support.
Bitcoin had risen to $ 55,700 with the heavy buying pressure seen the day before.
Although the funding rates in the stock exchanges turned positive, as of Thursday the attention focused on a situation that could lead to a decrease in the opposite direction.
A positive funding rate means that the market expects the uptrend to continue and that there are predominantly long positions in the market. In such a case, the settlements that will occur in a possible correction can further deepen the correction.
The Crypto Fear & Greed Index also reflects the mood among investors. As of Thursday, the index reached a score of 76/100, which is in the “extreme ambition” region.
It may interest you: What is the Crypto Fear & Ambition Index?
Investor and analyst Rekt Capital, “Investors are getting more and more greedy with BTC” he warned.
Preparation for profit taking
Bitcoin, which is $ 10,000 below the record level, may face resistance at $ 58,000 and $ 60,000 before starting price discovery again.
According to analysts’ forecasts, Bitcoin may close October just below the record high. The largest cryptocurrency could finally start the real rally in October after falling to the downside in November.
On the other hand, experienced market participants have already started recommending exit strategies for this week. One of those names is John Bollinger, creator of the popular Bollinger Bands indicator.
Second goal achieved, $ BTCUSD. UpperBB expands with the rally. Maintain a trailing stop like BBstop or Chandelier. All clear for now, but starting to look for signs of a stop / exit. I’m going for a couple of weeks of travel. Good trade! #Bitcoin
– John Bollinger (@bbands) October 5, 2021
Bollinger bands track an asset’s up and down volatility. The indicator indicates that calm conditions will continue in the current situation. If the bands narrow, volatility increases.
It may interest you: What are Bollinger Bands? How to use?