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 downturnsFed 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 an honest pullback after related readings. June 2023 introduced one other correction. The July 2023 peak led to main promoting by means of 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 effectively beneath the management lineTrading beneath 20 and 50-day EMAsVolatility at its lowest ranges since 2023
