Bitcoin’s price continues pressing higher, now targeting $55,400 next according to technical analysis. However, even the most bullish analysts are starting to sound warnings over the market getting overextended and due for a cooldown.
TLDR
BTC price has a target of $55,400 next according to technical analysis
Traders are warning the market is getting overheated and “euphoric”, expecting a correction
Analysts say $50,900 remains a strong support level for Bitcoin
High demand for call options suggests some traders see BTC potentially surging to $80,000+
Positive sentiment backed by big bets, but analysts caution the market can’t stay “up only” forever
BTC now trades above $52,000, up almost 20% over the past week. Accelerating spot Bitcoin ETF inflows have powered much of the rally, but analysts caution over “unhinged greed and euphoria” sending prices vertical.
They argue such parabolic rises inevitably result in a correction once sentiment peaks.
The optimism is clear in the derivatives market though, with an unusual frenzy of activity focused on high-strike call options. Over $10 million alone has been spent on premiums for $60,000 and $80,000 calls expiring from April to December. This reveals traders betting confidently that Bitcoin still has room to run much higher through year’s end.
Cup and handle #Bitcoin #sendit pic.twitter.com/DmYAVwmLfj
— Matt Dines (@BuildCIO) February 13, 2024
December calls even target triple-digit BTC prices of $100,000. And near-term calls for March expiry are clustered around a $60,000 strike, with open interest representing bets worth $67 million. So there is no shortage of traders expecting new all-time highs in short order.
Still, some analysts project Bitcoin hitting $75,000 in the coming months as part of an emerging “cup and handle” price pattern. And despite the warnings, quantitative firm QCP Capital sees BTC reaching fresh highs before March ends. So the market remains biased towards further upside.
But the chorus of analysts expecting a cooldown is growing louder. $50,900 remains an important support level on the way up, but if negative news hits, traders seem ready for BTC to drop and “return to reality” after its vertical ascent.
For now, both Bitcoin and Ethereum markets remain firmly bullish. But once the last exuberant buyers capitulate, the crypto markets may need to ride out yet another cleansing period before the bull resumes.
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