On Thursday, Bitcoin made a solid return in all metrics of the crypto market, its value increased, it jumped all the way to $55K, and across all indexes and charts, Bitcoin was a shining star. Although it is pretty great news for the whole crypto community in terms of Bitcoin reclaiming its lost touch in the eyes of the experts, this current rally is a bit overextended, and various warnings have been issued around it. On October 7th, Bitcoin tried its best to be able to push through the $50K resistance level, but it was short a few dollars. This is where the whales came into play and started pouring money into the crypto market, making Bitcoin cross the $50K mark.
At present, Bitcoin has housed itself at $54K successfully after failing to maintain the $55K support on Thursday. The current highs for Bitcoin suggest that the market will be actively looking for more upside from the investors in the upcoming weeks, and if this doesn’t pan out, then the market might spin out of control. But the concern of the experts is that when more money is poured consistently into Bitcoin, and it starts reaching higher price positions, someone along the ladder is going to get hasty, and they will dump their Bitcoin to seek profit from the market.
If this happens, a steep and very sharp downward trend for Bitcoin might start resulting in market instability. There are many indexes out there used by experts to find the current footing of the investors with a dedicated cryptocurrency. One such index is the crypto fear and greed index, and at present, it shows a score of 76/100 for Bitcoin, which signals extreme greed among the investors.
Next Resistance Level for Bitcoin
The next resistance level for Bitcoin at the moment is set at $58K and $60K, which means that in the upcoming days, the whales and Bitcoin should be trying to cross this resistance, or otherwise it would be game over for them. If Bitcoin doesn’t succeed in overcoming this resistance, then sooner than later, it is going to let it fall in a price-oriented free fall which from no angle is a treat for investors or the crypto market for that matter.