I observed one thing regarding in conventional markets not too long ago. The NASDAQ 100 RSI hit 75 — firmly in overbought territory. This issues greater than most crypto merchants understand.
Why inventory markets have an effect on crypto:
Crypto sometimes correlates with shares throughout downturnsFed Chair Jerome Powell referred to as markets “pretty overvalued”Historic RSI peaks at 75 usually set off pullbacks
Wanting again at earlier cycles, I see a sample. Each time the NASDAQ reached these overbought ranges, we noticed vital corrections inside weeks.
February 2023 noticed an honest pullback after comparable readings. June 2023 introduced one other correction. The July 2023 peak led to main promoting via October.
Bitcoin’s Present Technical Image
I’m monitoring Bitcoin at $113,000 proper now. The technical indicators paint a blended image that has me cautious.
Present Bitcoin alerts:
MACD displaying downward momentumRSI is properly under the management lineTrading under 20 and 50-day EMAsVolatility at its lowest ranges since 2023
