Bitcoin reaches new all-time high
13 Apr 2021
Bitcoin’s price hit a new record high on Tuesday of $63,478.
However, although the market sentiment surrounding Bitcoin and Ethereum is bullish, analysts are mixed in regard to short-term sentiment.
On Tuesday the price of Bitcoin entered price discovery exceeding its past all-time high to climb above the $62,000 mark at the time of writing, Cointelegraph reports.
Although Bitcoin’s momentum is clearly strong, traders have mixed views on the digital currency’s near-term trajectory.
Indeed, cryptocurrency derivatives trader Scott Melker stated: “Hidden bullish divergence printed a couple of candles ago, signalling continuation and invalidating the bear div. 4-hour RSI has finally reached overbought, let’s see how deep it can push.”
In addition, indicators show Bitcoin may be overbought in the short-term, whilst the futures market is also very overcrowded.
Bendik Norheim Schei from Arcane Research said the three-month premium on BTC futures contracts is nearing the 50% mark.
High premiums mean the risk of a sharp sell-off increases due to investors taking profit, the Cointelegraph report goes on to add.
“This is insane. Annualized 3-month basis (premium on BTC futures contracts) approaching 50%. 50%,” Norheim Schei said.
However, Mohit Sorout, founding partner of Bitazu Capital stated Bitcoin may be reaching the end of its uptrend: “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.”
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