Bitcoin Bulls Just Joining the Rally Are Very Late to the Party, Analyst Says

Bitcoin (BTC), the leading cryptocurrency by market value, has gained over 40% in four weeks and is trading just 12% short of its record high near $69,000.
Such an uber-bullish market condition often has short-term traders and speculators, who missed the early rally, jump in with both feet, using riskier leveraged products like futures to maximize gains and make up for initially sitting on the sidelines.
If you are one of those short-term traders, you might want to consider the new information, which suggests chasing the rally now may be risky, according to the news and analysis website The Market Ear.
“Bitcoin [14-day] RSI at 88. We have not seen RSI this overbought AND bitcoin trading at these absolute levels, ever,” analysts at The Market Ear said in Thursday’s edition of the newsletter.
“Chasing it here looks like a very late trade,” analysts added.
RSI, developed by J. Welles Wilder, is a momentum indicator that measures the speed and change of price movements over a set period, usually 14 days or 14 weeks.
A reading above 70 reflects overbought conditions or a situation where the asset's price has seen a long run of successively higher prices or rallied a little too fast and may correct lower soon.