- Bitcoin Managed to post a Remarkably powerful monthly candle near yesterday
- This marked the first time which the crypto had shut its yearly candle over $10,700 because mid-December of 2017
- Soon after the close happened, bulls awakened and enabled BTC to place new 2020 drops of $11,800
- It did confront some significant selling pressure at those highs that caused its own price to view a sharp decrease, but it has since stabilized
- Advisors are now widely noting that the grade crypto is not able to see additional upside down, but there are some grim indications
- One particular hint would be investor greed – that continues to be rocketing higher in recent times
Bitcoin along with the aggregated cryptocurrency marketplace is flashing a few overt indications of power as BTC hovers in the mid-$11,000 area.
Overnight, it managed to surmount the preceding immunity it confronted around $11,400, together with the rest above this amount propelling it into new annual highs of $11,800.
At this stage, it lost some of its momentum, then declining down to lows of $11,500.
Despite breaking to the $12,000 area, it appears to be unbelievably robust and well-positioned to view additional upside.
This overt strength has induced investor greed amount to rocket – which can be a sentiment indicator that analysts frequently use to ascertain if the marketplace may be due for a pullback.
Bitcoin Rallies to Brand New 2020 Highs Following Bullish Monthly Candle Close
At the time of writing, Bitcoin is currently trading up just under 2% during its present price of $11,545.
This marks a remarkable spike in daily lows which were placed within the reduced -$11,000 area and arrived about near this heels of the asset’s bullish monthly near.
While talking about the potency this monthly candle supplied the cryptocurrency, 1 analyst explained it is hard for him to imagine anyone being bearish currently.
“BTC HTF Update: Imagine being bearish, strongest monthly in 3 years,” he explained.
Image Courtesy of Cactus. Chart via TradingView.
Investor Greed is Flashing a Grave Signal for BTC’s Uptrend
One factor which may indicate Bitcoin is overdue for a pullback is that the sharp growth in investor greed noticed during the last few days.
On this subject, 1 analyst explained that during company bull markets, sharp pullbacks do occur.
“Greed almost at 80. I’m absolutely not telling you to short, but it is finally time to take some profits. Even in a massive bull run, pullbacks happen,” he clarified.
Image Courtesy of Byzantine General.
The reason greed might be a counter-indicator is that it indicates traders may be overleveraging their own Bitcoin vulnerability – leading to large leverage margin positions along with other aspects.
This may give bears with gas to ignite a temporary decrease.
Featured picture from Unsplash. Charts and pricing information via TradingView.