Bitcoin’s price broke through $63,000 and hit a record high. In the short term, the traders were caught.
Bitcoin Price Hit $63,777
The price of Bitcoin (BTC) hit a record high of $63,777 on Binance on Tuesday.
BTCUSD Chart. Source: Binance
Market sentiment on Bitcoin and Ether (ETH) is mostly bullish, but short-term sentiment remains mixed.
On Tuesday, the price of Bitcoin entered pricing and surpassed its all-time high to break through $62,000.
When an asset enters the pricing phase, two situations can arise: the asset is overbought and is being seriously corrected, or the technical momentum increases and continues to recover.
While Bitcoin’s momentum is clearly strong, traders in BTC’s recent trend are mixed.
Scott Melker, a cryptocurrency derivatives trader, said BTC’s four-hour price chart has started entering the overbought zone.
“Hidden bullish divergence printed a couple of candles ago, signaling continuation and invalidating the bear div. 4-hour RSI has finally reached overbought, let’s see how deep it can push.”
Bitcoin price chart with divergence. Source: Twitter
The above technical indicators show that Bitcoin could be overbought in the short term and the futures market is still extremely crowded.
Bendik Norheim Schei, head of research at Arcane Research, stated that the three-month premium for BTC futures contracts has reached 50%.
BTC futures annualized rolling 3-month basis. Source: Twitter
The premium on the futures market indicates whether the futures market is overheated by buyers. When the premium is high, the risk of investors suffering a serious sell-off after profit-taking increases.
“This is insane. Annualized 3-month basis (premium on BTC futures contracts) approaching 50%. 50%.”
The last stop of the bull rally?
Bitcoin could be the last stop on an uptrend, according to Mohit Sorout, founding partner of Bitazu Capital. He says:
“Truth be told I seriously think we’ve entered the final leg of this $btc bull market. To be clear, final leg could be 2-3 weeks or even more. Price could reach 200k or even more who knows. Just don’t make irrational life decisions based on unrealized PnL.”
Pi cycle top indicator. Source: Twitter
However, it is very likely that Bitcoin will not peak like it did in 2017. On the contrary, bitcoin can fluctuate and consolidate for a long time after it has peaked, much like early gold.