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Bitcoin Is Overbought: Why Would This Be Bullish For Its Price?
Unlike other financial assets, overbought levels would be positive for bitcoin, according to an analytics firm.
By Bárbara Distéfano 5 March, 2024
Despite various indicators indicating that bitcoin (BTC) was overbought and would fall in price, today it touched its all-time high of $69,000 (USD). According to market analysis provider, Bespoke Investment Group, this is because an overbought signal does not necessarily negatively affect the digital currency.
To understand this, introduce that bitcoin is currently trading 2.6 standard deviations above its 50-day simple moving average. This means it's "extremely overbought," though history has shown it's not always negative, he warns.
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The content is for reference only, not a solicitation or offer. No investment, tax, or legal advice provided. See Disclaimer for more risks disclosure.
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