Bitcoin Bulls Warn Latecomers As BTC/USD Surges 40% in Four Weeks
Bitcoin (BTC/USD) has been on a bullish run, with a 40% increase in just four weeks, adding nearly $19,000 in the past month. While this surge may be enticing for short-term traders and speculators who missed the early rally, analysts are warning latecomers about the potential risks of joining the rally at this stage.
The Market Ear, a news and analysis website, has cautioned that chasing the rally now may be risky. According to CoinDesk, analysts at The Market Ear highlighted that the 14-day Relative Strength Index (RSI) for Bitcoin is at 88, indicating overbought conditions. They advised that chasing the rally at these levels looks like a very late trade.
The RSI is a momentum indicator that measures the speed and change of price movements over a set period. When the RSI reads above 70, it suggests that the asset’s price may correct lower soon. Bitcoin’s current value relative to the RSI calls for caution among speculators looking to enter the market at the current rate.
Despite the warning, analysts remain bullish on Bitcoin’s long-term potential. Some analysts predict that Bitcoin could reach $120,000 and even $180,000 by September 2025. Caleb Franzen, founder of Cubic Analytics, has suggested a potential high of $180,000 for Bitcoin. Additionally, cryptocurrency analyst Kevin Svenson predicts that Bitcoin could hit new all-time highs before the upcoming halving event in April, but warns of potential downside risks following the event.
As of the latest price action, Bitcoin was trading 1.6% higher in the last 24 hours according to Benzinga Pro. While the short-term outlook may be uncertain, analysts believe that Bitcoin’s big picture remains bullish, with potential for significant price appreciation in the long run.
In conclusion, while Bitcoin’s recent rally may seem enticing, latecomers should exercise caution and carefully consider the risks involved in jumping into the market at this stage. It’s important to conduct thorough research and seek advice from financial experts before making any investment decisions in the volatile cryptocurrency market.
