Bitcoin Greed Index 90: Correction Risks Grow with New Patterns

Bitcoin formed a new All-Time High at $93,905.51 on November 19th, 2024 – narrowly missing $94,000 but closing above the 1.238 Fibonacci Extension Level at $92,391.13.

Bitcoin Daily Chart:

Currently, there is a bearish RSI divergence forming on the daily timeframe, which signals weakening bullish momentum. On the lower timeframes of 1H and 4H, the Bitcoin chart is forming an ascending channel or a rising wedge.

Bitcoin 4H Chart:

Paired with these bearish signs is the Bitcoin Fear & Greed Index hitting levels of Extreme Greed at 90 yesterday, which increases the risk of a correction.

Key Factors to Watch on Bitcoin

With the possibility of a correction looming on Bitcoin, the same possibility is also present for other cryptocurrencies in the market – such as Ethereum, Solana, Cardano, and even DOGE. 

It then becomes highly important to monitor the price action of Bitcoin in the coming days or weeks, if you have a vested interest in the performance of cryptocurrencies.

Currently, the Bitcoin price is well supported by the 4H-EMA 20, which becomes an even more effective indicator (in this editor’s opinion) when turned into a Bollinger Band®. Then, set the Standard Deviation to 1, which allows us to capture deviating moves.

Using this method, we can clearly see that Bitcoin trending higher while being supported by the 4H-EMA 20.

This creates a cluster of technical supports at around the $90,500 price zone (Support), which includes the lower trendline of the Rising Wedge and Ascending Channel.

• 4H-EMA 20: Currently acting as trending support, at ~$91,356.83

Traders must also be aware that the 1.238 Fib Extension Level at $92,391.13 will act as Minor Resistance, alongside the ascending channel’s midline, upper trendline, and the rising wedge’s upper trendline as well.

• 1.238 Fibonacci Extension Level: $92,391.13
• Ascending Channel Midline and Psychological Level: $94,000
• New All-Time High: $93,905.51

For now, Bitcoin still remains in an uptrend, as long as the 4H EMA-20 is able to continue supporting higher prices.

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