The price of Bitcoin broke above $63,000 to hit a new all-time high, and traders are mixed in the short term.
The price of Bitcoin (BTC) reached a new all-time high at $63,478 on Tuesday on Binance.
The market sentiment around Bitcoin and Ether (ETH) is overwhelmingly bullish, but the short-term sentiment remains mixed.
Analysts use the term “price discovery” when the price of an asset reaches a new all-time high.
On Tuesday, the price of Bitcoin entered price discovery, surpassing its record high as it made its way above $62,000.
When an asset enters price discovery, two scenarios could emerge: It becomes overbought and sees a severe correction, or it sees stronger technical momentum and rallies further.
While the momentum of Bitcoin is evidently strong, traders are mixed in the near-term trajectory of BTC.
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.