According to Arcane Research, the "7-day average daily real bitcoin volume" hit a yearly high.
Slowing momentum is probable given that the real volume of Bitcoin rose 270% in the past month, according to Arcane.
Data shows that the Fear and Greed Index is above 90.
When the index nears 100, it shows that the market is exhibiting "Extreme greed."
Historically, researchers at Arcane said that when greed levels stayed above 90, it had been ideal periods to take profit.
"The Fear and Greed Index pushed above 90 last week and is currently at the highest levels seen since the index was launched in the beginning of 2018. We have only been higher one time, during the absolute peak last summer. As emphasized many times already this year, this is not a level we stay at for a long time and has historically been a good time to take some profit."
The Fear and Greed index pointing at extreme greed coincides with Bitcoin testing $16,000 for the first time since 2017.
Atop the various on-chain indicators that anticipate either an explosive rally or a deep pullback, volatility trends also suggest a major price movement is nearing.
Arcane found that the volatility rose significantly last week, causing the 7-day volatility to reach 4.6%. With the volatility at a two-month high, a large price movement has become increasingly probable.
"The first double-digit percentage since July certainty resulted in a large spike in volatility last week. The 7-day volatility is now at 4.6%, the highest in two months. This week has begun with massive moves across global markets as well, and we could be in for yet another eventful week in the crypto market."
Research: real Bitcoin volume explodes to 2020 high, but greed takes over
Published on Nov 15, 2020
by Cryptoslate | Published on Coinage
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