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I observed one thing regarding in conventional markets lately. 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 downturns
- Fed Chair Jerome Powell referred to as markets “pretty overvalued”
- Historic RSI peaks at 75 typically set off pullbacks
Trying 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 a good pullback after related 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 combined image that has me cautious.
Present Bitcoin indicators:
- MACD displaying downward momentum
- RSI is properly under the management line
- Buying and selling under 20 and 50-day EMAs
- Volatility at its lowest ranges since 2023