- Bitcoin price is bullish after a massive rally towards $ 17,000.
- The digital asset has not seen a significant pullback since September 3.
Bitcoin just hit $ 17,000 for the first time since January 2018. Although sentiment is positive, many investors are becoming increasingly greedy, which can generally lead to a sharp correction in the short term.
Bitcoin investors are extremely greedy
According to the Crypto Fear and Greed Index, it appears that Bitcoin investors have become extremely greedy since November 6. History has shown that when high levels of greed are maintained for a long time, the price of Bitcoin tends to undergo a strong correction.
The aforementioned situation occurred last time on September 2, when the price of Bitcoin plunged from a high of $ 11,954 to a low of $ 9,960 in 24 hours. Before the crash, this chart showed a lot of greed from August 2.
4 hour chart
Current levels of greed are extremely high, suggesting a possible setback in the short term, however this period could last for several weeks or even months. On the 4-hour chart, the TD Sequential indicator just presented a sell signal in the form of a green candle along with an overextended Relative Strength Index (RSI), adding more selling pressure.
1 hour chart
Furthermore, it appears that on the 1-hour chart, the TD Sequential is also about to present a sell signal. The validation of both signals could propel the price of Bitcoin towards $ 16,600 in the short term.
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