Bitcoin Bitcoin/USD is in a bullish phase, but analysts warn laggards about the potential risks of joining the rally at this stage.
What happened: Bitcoin has surged 40% in just four weeks, adding nearly $19,000 in the past month.
This bullish market condition often causes short-term traders and speculators, who have missed the initial rally, to rush into using riskier leveraged products such as futures.
However, The Market Ear, a news and analysis website, suggests that chasing the rally now could be risky, CoinDesk reported.
“Bitcoin [14-day] RSI at 88. We have never seen an RSI this overbought AND bitcoin trading at these absolute levels, ever,” analysts at The Market Ear said in Thursday’s edition of the newsletter. “Chasing it here seems like a very late move “, they added.
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The Relative Strength Index (RSI), a momentum indicator that measures the speed and change of price movements over a given period, reflects overbought conditions when it rises above 70.
This suggests that the asset price may correct lower soon. Bitcoin’s current value relative to the RSI calls for caution among speculators looking for a long entry at the current market rate.
Because matter: Despite the warning, analysts say the overall picture for Bitcoin remains bullish, with a potential price of $120,000 and higher by September 2025.
This is in line with the prediction made by Caleb Franzen, founder of Cubic Analytics, who suggested that Bitcoin could potentially reach a high of $180,000.
Also, cryptocurrency analyst Kevin Svenson predicts that Bitcoin could reach new all-time highs before the next halving in April. However, he also warns of potential downside risks following the event.
Price Action: According to Benzinga Pro, Bitcoin has traded up 1.6% over the past 24 hours.
Read next: Crypto Analyst Predicts Success for Two Rival Dogecoins: “Meme Season Looks Like It’s Heating Up Again”
Disclaimer: This content was partially produced with help from Benzinga Neuro and was reviewed and published by Benzinga editors.
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