BTC performance has been remarkably stunning with a mind-blowing return on investment (ROI) over the past years. Although a recession is looming around the corner, the leading cryptocurrency is reaching a danger zone.
However, its sentiment is currently at greed after a consistent pump to a new high of $123,218 yesterday. Rejecting this high sharply, it lost about seven grand and is now trading at around $117k. On-chain data have also revealed substantial outflows in the past 12 hours.
Technical Analysis and Volatility
Bitcoin’s trend is still much in favour of the bulls on the daily chart, but they appear exhausted and are currently taking a break following the latest drops. The drops were triggered by a bearish hammer candle, causing a pullback towards the previously broken high for support.
As a result, buying has faded over the past few hours with no pressure from the bulls’ side again. The bears have taken charge as they release pressure today amid rising supply.
On-chain Analysis and Sentiment
Several on-chain metrics have shown Bitcoin to have reached Euphoria once more. While this metric signals a potential bull cycle top, the market may collapse in no time. Looking at the above-generated chart from Checkonchain, the green vertical zone reveals a full history of “the Bitcoin euphoria zone” since inception, and as we can see, it’s now trading back in the zone after a four-month break.
As said earlier, sentiments surrounding BTC still appear positive from a long-term perspective, although things are much more likely to get uglier soon as the market enters a greedy state. As a matter of fact, the asset has reached an extremely overbought condition from a technical standpoint. A big crash should be expected when the market tops.
