Bitcoin Price Surge Above $80,000 May Be Overheating

Bitcoin's price surge above $80,000 is showing signs of overheating, according to Mitrade.

The cryptocurrency extended its gains on Tuesday after its strongest weekly rise in more than three years.

Institutional demand remains strong, with spot Exchange Traded Funds (ETFs) recording a net inflow of $337.56 million on Monday, marking the sixth consecutive day of positive flows since August 17.

However, despite this growing demand, traders are advised to remain cautious due to signs of profit-taking, falling open interest, and overstretched momentum indicators.