WEEKLY NOTION: Three Reasons Why the Cryptocurrency Market Could Suffer a Nasty Correction
The cryptocurrency market seems to be stronger than ever and has seen a $250 billion increase in its market capitalization since the beginning of October.
Bitcoin is currently trading at $19,000, on the verge of hitting a new all-time high.
Other popular coins like Ethereum managed to crack $600 for the first time in two years and XRP had a colossal rally to $0.78.
Three on-chain metrics indicate a potential pullback is nearby.
The Crypto Fear & Greed Index chart shows that traders are extremely greedy right now at 94 points, the highest value since June 2019 when Bitcoin peaked at $13,970 but experienced a nasty retrace towards $8,215 only three months later.
Source: FX Street
This is an indicator that the cryptocurrency market might be close to topping out.
We can also observe another period of high greed throughout August 2020 when Bitcoin was trading at $12,468 before a notable pullback towards $10,000.
This last pullback was notably weaker but still represented a 20% drop which would put Bitcoin at $15,000 at current prices.
Read more from the original article:
https://www.fxstreet.com/crypt...
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