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Bitcoin has surged to within striking distance of the record high it set three years ago, but some analysts cautioned that further gains would leave the price “screaming” for a major correction.
On Wednesday, bitcoin traded as high as $18,492 after an explosive run in which it has jumped more than 50 percent in 30 days, Refinitiv data show. Bitcoin peaked in December 2017 at $19,458, before suffering a spectacular crash that left the market dormant for years.
This time, bitcoin could touch new records, according to Joel Kruger, a currency analyst at LMAX Exchange, who said that if that happened, prices could be on course for a sharp fall. Traders said volatility remained high.
“We would caution against buying at current levels, with the market having run so far and fast,” Mr. Kruger said. “The market might want to poke above the record high but if that happens, it will leave the price . . . screaming out for a major correction.”
Prices collapsed in March when the coronavirus-induced sell-off ripped through financial markets. But the exchange rate has been on a tear ever since, gaining 380 percent since this year’s low.
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