Bitcoin reached a new all time high of $63,478 on Tuesday afternoon, and while the long term sentiment is still bullish, traders are thinking that the swing has become over extended and due for a correction.
Scott Melker, a cryptocurrency derivatives trader, said that the four-hour price chart of BTC has started to enter into overbought territory.
The "bad" news – we have confirmed bearish divergence with RSI on the 4-hour chart.
The potentially "good" news – a hidden bullish divergence looks likely at some point, which would invalidate the bear div.
Watching closely.
Caution, not panic. pic.twitter.com/ZbouZgI4fm
— The Wolf Of All Streets (@scottmelker) April 12, 2021
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 while displaying a Pi cycle Top Indicator:
Truth be told I seriously think we've entered the final leg of this $btc bull market pic.twitter.com/V5WJF5gC0S
— MS📈 (@singhsoro) April 13, 2021
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
— MS📈 (@singhsoro) April 13, 2021
Victor Nnadi is an Independent Economics Researcher and a Securities Trader.
