What are traders talking about Bitcoin’s latest all-time peak of $63K?

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Bitcoin’s price has surpassed $63,000 to set a new all-time record, but markets are divided in the short term.

On Binance on Tuesday, the price of Bitcoin (BTC) hit a new all-time high of $63,478.

Market sentiment against Bitcoin and Ether (ETH) is largely positive, but short-term sentiment is mixed.

When the price of a commodity sets a new all-time peak, analysts use the phrase “price discovery.”

On Tuesday, the price of Bitcoin reached price exploration, surpassing its previous high of $62,000.

When an asset reaches market exploration, one of two situations will occur: it becomes overbought and experiences an extreme reversal, or it experiences greater technical traction and continues to rally.

Though Bitcoin’s momentum is undeniably high, traders are divided about BTC’s near-term trajectory.

Scott Melker, a cryptocurrency derivatives trader, said that the four-hour price chart of BTC has started to enter into overbought territory.

“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

On top of that, technical measures indicate that Bitcoin could be overbought in the short term, while the futures market remains highly crowded.

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According to Bendik Norheim Schei, the head of research at Arcane Research, the three-month premium on BTC futures contracts has reached 50%.

 

BTC futures annualized rolling 3-month basis. Source: Twitter

Futures premiums show whether the options market is oversaturated with investors. If the premiums are high, the risk of a major sell-off as a result of profit-taking by buyers rises.

“This is insane. Annualized 3-month basis (premium on BTC futures contracts) approaching 50%. 50%.”

Final leg of the bull rally?

According to Mohit Sorout, the founding partner of Bitazu Capital, there is a chance that Bitcoin is in the final leg of its uptrend. He said:

“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, there is a good chance that Bitcoin will not reach its all-time high like it did in 2017. Rather, like gold in its early days, it could range and consolidate for a long time after it peaks.

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