Bitcoin Bulls May Face Disappointment as Technical Indicator Signals “Overbought Downturn”
Hey there! If you’re a Bitcoin (BTC) bull, you might want to brace yourself for potential disappointment. According to Fairlead Strategies, a monthly technical indicator has just flashed a signal called an “overbought downturn.” So, what does that mean exactly?
Well, this indicator, known as the stochastic indicator, was developed by George C. Lane back in the 1950s. It recently dropped below 80, suggesting a loss of upward momentum. In simple terms, when the indicator is above 80, it means things are overbought, and when it drops below 80, it indicates a weakening of upward momentum.
Katie Stockton, the founder and managing partner of Fairlead Strategies, believes that this downturn could prolong the basing process for Bitcoin. She also points out that Bitcoin has struggled to break through the $31,900 “cloud resistance” in recent months, which further supports the idea of a longer-term turnaround.
Hot Take: Bitcoin Bulls Face Uncertainty as Technical Indicator Signals Weakness
Bitcoin bulls, beware! The recent “overbought downturn” signal from the stochastic indicator suggests that the upward momentum for Bitcoin may be losing steam. This setback, combined with the ongoing struggle to surpass the $31,900 resistance level, could mean that a long-term turnaround is still a ways off. Stay tuned for more updates!
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