Bitcoin reached a new peak on Monday, with the cryptocurrency rally persisting after Donald Trump’s election victory, soaring to an impressive $89,000 amid the recent surge in the crypto market.
The flagship cryptocurrency has surged by 9.4% in the last 24 hours and a whopping 29.6% in the last 7 days.
According to Coingecko’s data, Bitcoin is currently exchanging hands for $89,123 just $1,000 shy of a major milestone of $90,000
Several analysts believed that the current bull run is quite euphoric and temporary.
They warned that traders should be cautious about buying further during the market euphoria citing impending volatilities and Price correction.
The co-founder of Morph, Azeem Khan argued that with Bitcoin crossing the $85,000 mark the crypto market is currently in Euphoria.
Khan cautioned traders against further buying due to the likelihood of a future correction.
“Now that Bitcoin has crossed $85k, we’re absolutely at the place where euphoria has set into the market,” Khan stated.
“Where it goes from there is hard to say… since we’re so early in euphoria I’d say we’re back at the place where people who don’t care about crypto from our families will be asking us what tokens to buy,” he added.
Analysts at Singapore-based QCP Capital echoed Khan’s views in their assessment of the current situation. They emphasize the importance of exercising caution, drawing their conclusions from a technical standpoint.
The analysts pointed out the significant increase in perpetual funding rates and basis yield which indicates over-leveraging.
Bitcoin’s rally has taken the crypto market by storm since the United States election week which ended in victory for former president Trump.
On the last day of October, Bitcoin was struggling to break through its all-time high of $73,737, but in November, Bitcoin smashed its all-time high, rising to $89,000.
