The storm in the Bitcoin market is coming! The "Extreme Greed" sentiment may trigger a short squeeze and a crazy surge!
The Fear and Greed Index for Bitcoin is currently at 78, in the "Extreme Greed" range, while the BTC price is experiencing some range fluctuations. This discrepancy between sentiment and price movement provides us with a signal: although market sentiment is high, it may hint at potential pullbacks or consolidation phases.
Despite the market sentiment remaining unchanged over the past few days, staying at a high level of greed, this is often a precursor to significant pullbacks or consolidation. It is noteworthy that as the market experiences declines, overly optimistic sentiment may trigger sharp volatility or adjustments, especially when investors are too focused on future gains.
Additionally, the current accumulation of leveraged short positions is also paving the way for a potential short squeeze. If the Bitcoin price sharply breaks above $100,000, liquidating these short positions could trigger a wave of short-term price increases, leading to more market volatility.
Historical data shows that Bitcoin often undergoes a selling-off and consolidation phase when breaking previous highs, so the current price fluctuations may signify a major breakthrough in the future. Once the price stabilizes and continues to rise, the altcoin market may also see opportunities.
This market fluctuation may only be temporary. Are you ready to seize opportunities amid market volatility? Don’t forget to follow “Professor” for insights into market dynamics!
