The Bitcoin market continues to demonstrate alarming stability. On the surface, it is flat around $90,000, but there is danger hidden under this calm. The overheated asset, without a full correction, seems to have frozen before the inevitable rollback.
🔥 Greed Market: Overheating to the Max
We are in a phase of intense greed. Investors, blinded by rising prices, continue to withdraw BTC from exchanges, creating the illusion of a shortage. Bitcoin reserves on trading platforms have indeed fallen to their 2018 low, but should we take this as a positive sign? In fact, this may be the first warning sign.
Investors are withdrawing coins in an attempt to protect assets from potential sales, but this "HOD" effect only masks the market overheating. Every day, what is inevitably going to happen is postponed: a normal correction!
⚠️ Dangerous Range: Pushing Towards the Abyss
Bitcoin is currently trading in the 86K-93K range, and at first glance, the market is trying to break through upwards. However, squeezing towards the upper resistance is not always a harbinger of growth. Overbought conditions continue to put pressure on the market, and the lack of significant corrections increases the risk of a sharp collapse with each passing day.
Any disruption to the current equilibrium could trigger an avalanche of selling. If prices start to decline, the support range could be broken, opening the way to much deeper levels.
🤔 What does this mean for investors?
Now is the time for extreme caution. When greed peaks, the market usually responds with a severe correction. Ignoring overheating signals can lead to big losses, especially for those who enter the market without a plan.
Bitcoin does have a chance to break 100K, but before that, the probability of a decline looks much more realistic. It is difficult to imagine long-term growth against the backdrop of such a tense situation.
The advice is simple: do not give in to euphoria. In the current market phase, it is better to refrain from impulsive decisions, so as not to become part of the statistics of "knocked down longs".