Bitcoin price dipped below $57,000, the extreme buying means the rally may soon be running out of steam
After struggling to sustain the $57,000 region for several days, Bitcoin price dipped below it as analysts said strong buying in the market could mean the rally could be about to run out. At the time of writing, BTC is changing hands at $56,349, a slight decrease of 2% in the last 24 hours.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price upside momentum is slowing, although pullbacks could be limited
Buyers are exiting positions when overbought signals appear on the chart. Resistance is seen around $58,000-$60,000, the level before the May drop. However, this time, the pullback can be limited to the $50.00-$52,000 support area.
The Relative Strength Index (RSI) on the 4-hour chart is falling from last week’s overbought levels, suggesting that the current pullback could extend into the Asian hours. The RSI is also being overbought on the daily chart, similar to that in early September before the correction occurred.
Currently, immediate support is seen at the 50-period moving average on the 4-hour chart, at $54,000. Short-term volatility could continue to increase as indicators indicate an impasse between buyers and sellers.
Meanwhile, yesterday’s Crypto Fear & Greed Index also entered the “Extreme Greed” territory and even lasted from last week to now. It is the highest level since early September, which preceded a sharp sell-off in Bitcoin. At the moment, the index has dropped a little to “Greed,” signaling the market sentiment is about to change.
Crypto Fear & Greed Index as of October 13 | Source: Alternative.me
Most altcoins ended the day lower. Only Binance Coin (BNB) has shown a significant increase, up to 12%, in the past 24 hours. The reason is that, as AZCoin News reported, Binance dedicates another $1 billion to Binance Smart Chain (BSC) project. They aim to boost BSC’s growth further. As you know, A year ago, Binance put up $100 million to support DeFi projects on BSC.
“Binance Coin is on a temporary breakout, and the accumulation from its millionaire holders appears to be paying dividends. Holders with 10k to 100k BNB have accumulated 412k BNB in the past two weeks, adding 8.7% more coins to their total holdings”, Santiment stated.
Meanwhile, Litecoin and Ethereum have just had a rivalry. Litecoin has just flipped Ethereum in terms of address activity for just the third time this year.
“We’ve also discovered that Litecoin’s payment count, which quantifies the number of addresses receiving LTC, has hit an ATH,” Santiment stated.
The cryptocurrency market capitalization has also increased slightly in a day and is currently at $2.137 trillion. And the Bitcoin Dominance is 45.7%.
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