Open interest data in the cryptocurrency market has approached the “extreme greed” zone.
The analyst of on-chain analysis platform CryptoQuant shared data that investors in the cryptocurrency market are becoming too greedy.
The data called ROC Open Interest shows that the level of Extreme Greed It only went up to 12 points below An experienced analyst stated that this region Not tested since April 2021 reminded.
Reminding that the risk of carrying a long position in the euphoric market is increasing, the analyst warned about strong corrections:
During a euphoric market, the risk of holding long positions increases as people buy on speculation that appreciation will continue in the short term. In terms of cycles, it is too early to say that the market is largely infected with enthusiasm, given the history of sentiment based on this indicator alone. However, during an upward price rally there are always strong corrections that cause the indicator to move away from the upper zone.
However, he stated that significant buying opportunities would arise if a new euphoria-centered peak comes and is followed by a significant correction, and he suggested that investors be prepared for every scenario.
Pay Attention to This Data on Bitcoin: It Shows that the Water is “Extremely” Heated! The article titled was prepared by Tugay Erdem and published on koinbulteni.com.