- Bitcoin’s rally has been heating up lately, with bulls taking full control of the price action as they rocketed the price above previous record highs overnight.
- This rally didn’t last too long, as an influx of selling pressure around $ 36,000 slowed its rise and caused it to drop to $ 34,000.
- It has since been consolidating around this price level and it remains unclear whether it will see an extended consolidation phase here or if it will regain momentum.
- An on-chain analyst explained in a recent tweet that a reliable indicator shows that while Bitcoin’s rally is heating up, it still has a long way to go before it enters ‘overheated’ territory.
Bitcoin has caused massive tailwinds for the whole crypto market in recent days and weeks, with the upward trend showing little sign of hesitation.
An on-chain analyst explained in a recent tweet that he is now watching for signs of exhaustion with BTC’s current rally, but so far there has been no result.
He notes that, compared to previous parabolic uptrends, according to one indicator, it is only in “warm” territory, meaning it has some way to go before it overheats.
Bitcoin is accumulating to all-time highs as a bull’s eye upside
At the moment of writing, Bitcoin is trading upward just over 3% at the current price of $ 35,000. This marks a massive rise from the recent lows of USD 30,000 set a few days ago.
Last night, crypto soared to new all-time highs of $ 36,000, and it looks like these highs are being tested again.
A breakthrough above could put the cryptocurrency in a full fledged parabolic boom that takes it past $ 40,000.
Data suggests the BTC rally is not even nearly done yet
One analyst explained in a recent tweet that Bitcoin’s rally has yet to reach levels where it lasts too long, noting that a historical analysis indicates it is only in its early stages.
“This rally is hot but not overheated yet. This is how much ‘speculative premium’ we have at the moment compared to comparable stages of the previous 2 bull markets. “
Image Courtesy of Willy Woo. Source: Woonomics.
Combine this historical precedent with the fact that institutional inflows are fueling Bitcoin’s uptrend, and it seems there is a high probability that upside down is imminent.
Featured image from Unsplash. Charts from TradingView.