Bitcoin (BTC) faced fresh doubts over the strength of its bull run on Oct. 7 as analysts eyed a potential reversal of Wednesday'due south short clasp.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Funding rates in the red zone

Information from Cointelegraph Markets Pro and TradingView tracked BTC/USD as it hovered almost $54,000 after declining to found support at the $55,000 mark.

The previous day had seen an abrupt surge to highs of $55,700 for Bitcoin, which was accompanied by major ownership pressure.

Equally funding rates flip positive beyond exchanges, however, concerns on Thursday focused on what could stop up existence an opposing motility lower.

Funding rates turning overly positive suggest that the market is expecting farther upside and that significant value is long BTC. Under such circumstances, a mass unwinding of positions could hasten and intensify a downward movement, should it brainstorm.

Bitcoin funding rates vs. BTC/USD chart. Source: Bybt

The mood among investors was echoed by sentiment data, with the Crypto Fear & Greed Index hitting 76/100 on the day, representing "extreme greed."

"Investors are extremely greedy towards BTC right now," trader and analyst Rekt Capital warned.

Crypto Fearfulness & Greed Index as of Oct. 7. Source: Alternative.me

Preparing for profit-taking

While under $ten,000 from all-fourth dimension highs at one betoken, Bitcoin additionally faces meaning resistance levels at $58,000, $60,000, and more on the way to returning to price discovery.

Related: Price fasten: Are whales front end-running the approval of a Bitcoin futures ETF?

Equally Cointelegraph reported, October is slated to close just below the highs, while November could see a return to lower levels before a December finale obliterates current records.

Notwithstanding, longtime marketplace participants are already advising an exit strategy this week, amongst them John Bollinger, creator of the pop Bollinger Bands trading indicator.

Bollinger bands track upward and downward volatility of an asset and are currently hinting that calmer conditions should prevail. When the bands narrow, however, volatility follows.

BTC/USD 1-day candle nautical chart (Bitstamp) with Bollinger bands. Source: TradingView

Altcoins, meanwhile, are not expected to evangelize definitive cycle gains until side by side year.