{"id":32276,"date":"2024-11-12T21:00:02","date_gmt":"2024-11-12T18:00:02","guid":{"rendered":"https:\/\/coinengineer.net\/blog\/?p=32276"},"modified":"2024-11-12T19:40:17","modified_gmt":"2024-11-12T16:40:17","slug":"warning-of-high-leverage-in-the-market-as-bitcoin-rises","status":"publish","type":"post","link":"https:\/\/coinengineer.net\/blog\/warning-of-high-leverage-in-the-market-as-bitcoin-rises\/","title":{"rendered":"Warning of High Leverage in the Market as Bitcoin Rises!"},"content":{"rendered":"

Cryptocurrency<\/strong> markets appear to be overheating as the current parabolic rally continues. Some industry leaders have warned that a deleveraging may occur before the next major upward move.<\/p>\n

Bitcoin<\/strong> price surpassed $85,000<\/strong> on November 11, reaching $86,788<\/strong>, and the Crypto Fear & Greed Index<\/strong> showed investor sentiment at 80, or “extreme greed,” on November 12. This marked one of the highest values recorded by the index.<\/p>\n

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The last time the index hit 80 was on April 9, just before Bitcoin<\/strong> experienced an 18% correction, with the price dropping from $69,135<\/strong> to $56,500<\/strong> by May 1. This data suggests that while investors are in a state of extreme greed, caution is necessary as a correction could follow.<\/p>\n

After Bitcoin<\/strong> reached a high of nearly $90,000<\/strong> on November 12, it continued its best weekly performance since the 2023 banking crisis<\/strong>. Over the past seven days, Bitcoin<\/strong> added $413 billion to its market capitalization.<\/p>\n

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