Bitcoin (BTC) Enters Overbought Territory: Correction Incoming or Just Getting Started?
Bitcoin bulls push BTC into technically overbought zone—sparking heated debate about what comes next.
Technical Warning Signs Flash
RSI readings scream overbought while trading volumes suggest either distribution or accumulation—nobody agrees which. The same indicators that predicted last month's 15% dip now trigger identical signals.
Market Psychology at Breaking Point
Traders split between taking profits and fearing they'll miss the next leg up. Leverage ratios hit dangerous levels as both camps double down on their positions.
Institutional Money Stays Put
Whale wallets show minimal movement despite the technical warnings. Either the big players know something retail doesn't—or they're waiting for greater fools to offload onto.
Because nothing says 'mature asset class' like everyone simultaneously checking the same free website for trading signals.
Has a $BTC local top just been made?
Source: TradingView
A 5.1% increase in the $BTC price may be the full extent of this current upside move. The faint trendline shows how the price has come back to meet it. If the price falls through, it WOULD be imagined that the horizontal support at $112,000 will be tested at the very least. If the price bounces from here, the horizontal resistance at just under $116,000 could be a likely place for a swing high and a rejection.
At the bottom of the chart, it can be seen that the Stochastic RSI indicators are topped out, while the RSI reveals bearish divergence. These are two extra reasons why a local top has probably just been made.
Bulls main task is to avoid a lower low
Source: TradingView
The daily time frame reveals that the price stopped short of the descending trendline that started from the $124,000 all-time high. In fact, it has reversed as far as the ongoing cross-down of the 50-day SMA below the 100-day SMA. These two simple moving averages could provide support, enabling the $BTC price to perhaps reach the descending trendline, although a rejection there would then be very likely.
It might be argued that the main task for the bulls from here would be to avoid a lower low below $108,700. If this does take place, the downtrend will be well-established, possibly leading to a further breakdown.
$115,300 is key level
Source: TradingView
The weekly view for $BTC reveals that around $115,300 is the level where the bulls could turn everything around. This is horizontal resistance and coincides with the descending trendline. A hold above here at the end of the week would do wonders for bullish sentiment.
At the bottom of the chart, the Stochastic RSI indicators are still posturing to cross down. As things stand, it is looking a lot more likely that a return to the $108,000 horizontal support could be the next MOVE rather than a breakout. Things should look clearer at the end of this week.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
