Bitcoin Overbought Above $12K But Analysts Understate Drop Fears

Bitcoin rose above $12,000 on Wednesday for the first time since August 2020 but signaled an imminent price correction as it entered a so-called “overbought” area. Some analysts expected the Bitcoin price to climb further upwards despite its overbought status.

He recalled the recent investments of major institutions into Bitcoin (MicroStrategy, Square, etc.), adding that more firms would “panic-buy” the cryptocurrency against their non-yielding cash investments. Excerpts: Logan Han, a daytrader-cum-market analyst, also envisioned Bitcoin at $20,000, its previous record high, if the cryptocurrency manages to hold or consolidate above $12,000.

Timeline of Bitcoin