Below you can see 4 indicators pointing out that BTC is currently overbought. Take a look at my previous post to see what indicators I use and what they mean.
At this point we will have to see how the market responds to BTC being overbought. What happens often, is many traders use this as an indicator to sell.
That is why we need to keep a close eye on the Balance of Power, the second blue lines chart. If the value is in the negative more frequently, we can understand that traders are using this opportunity to sell in overbought territory, then we can expect a bear run.
However, if the Balance of Power is above 1 more frequently, the buyers are still in control and we can expect a bull run.
Keep watching the Balance of Power !
Hit like if you found this helpful.
Thanks, Ev
At this point we will have to see how the market responds to BTC being overbought. What happens often, is many traders use this as an indicator to sell.
That is why we need to keep a close eye on the Balance of Power, the second blue lines chart. If the value is in the negative more frequently, we can understand that traders are using this opportunity to sell in overbought territory, then we can expect a bear run.
However, if the Balance of Power is above 1 more frequently, the buyers are still in control and we can expect a bull run.
Keep watching the Balance of Power !
Hit like if you found this helpful.
Thanks, Ev