Bitcoin (BTC) faced renewed doubts about the strength of the bullish move on October 7 when analysts saw a possible reversal of the short squeeze on Wednesday.

1 hour BTC/USD candlestick chart (Bitstamp). Source: TradingView
Funding rate in the red
It tracked data from Cointelegraph Markets Pro and TradingView BTC/USD as it hovered around $54,000 after failing to establish support for the $55,000 mark.

The day before, it rose sharply to $55,700 per bitcoin, accompanied by strong buying pressure.

However, with funding rates turning positive in stock markets, concerns on Thursday centered on the possibility of a reverse dip.

Excessively positive funding rates indicate that the market is expecting further growth and that a long BTC position is a great value. In such conditions, massive leveling of positions can accelerate and intensify the downward movement if it begins.

Bitcoin funding rates vs BTC/USD charts. Source: Bybt
Investor sentiment was buoyed by sentimental data: Crypto Fear & Greed reached 76/100 that day, indicating “extreme greed.”

“Investors are now very greedy for BTC,” a trader and analyst at Rekt Capital warned.

Crypto Fear & Greed Index as of October 7th. Source: Alternative.me
Preparing to use
Although it is below $10,000 from its all-time high at some point, Bitcoin is also facing significant resistance levels of $58,000, $60,000 or more on its way to the open.

Related: Price Rise: Will Whales Get ETF Approval for Bitcoin Futures in the Future?

As Cointelegraph reported, October should close just below the rally, and November may return to lower levels before the December finale erases current records.

However, long-time market participants are already recommending an exit strategy this week, including John Bollinger, the creator of the popular Bollinger Bands trading indicator.

The Bollinger Bands track the volatility up and down an asset and are currently indicating that more calm conditions should prevail. However, when the bands narrow, volatility occurs.

Source: CoinTelegraph

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