On-Chain Data Shows Bitcoin Rally Has Yet to Enter “Overheated” Territory
“This rally is warm but not yet overheated. This is how much ‘speculative premium’ we have right now compared to a similar phases of the prior 2 bull markets.”
Bitcoin has been creating massive tailwinds for the entire crypto market over the past few days and weeks, with its uptrend’s strength showing few signs of wavering.
One on-chain analyst explained in a recent tweet that he is now watching for signs of exhaustion with BTC’s current rally, but it is not showing any so far.
He notes that, compared to past parabolic uptrends, this one is only in “warm” territory according to one indicator, which means it has a way to go before it grows overheated.
At the time of writing, Bitcoin is trading up just over 3% at its current price of $35,000. This marks a massive surge from its recent $30,000 lows set just a few days ago.
Last night, the crypto surged to fresh all-time highs of $36,000, and it appears to be gunning for a retest of these highs.
A break above here could place the cryptocurrency into a full-fledged parabolic upswing that leads it past $40,000.
One analyst explained in a recent tweet that Bitcoin’s rally has yet to reach levels where it is over-extended, noting that a historical analysis indicates that it is only in its early phases.
“This rally is warm but not yet overheated. This is how much ‘speculative premium’ we have right now compared to a similar phases of the prior 2 bull markets.”
Combine this historical precedent with the fact that institutional inflows are fueling Bitcoin’s uptrend, and it does seem like there’s a strong possibility that serious upside is imminent.
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