Bitcoin (BTC) Might Be Overbought After $5,000 Pump, Warn Traders

The move that crypto investors en-masse have been waiting for finally happened on Tuesday morning. Within a matter of an hour, Bitcoin (BTC) rallied by 15%, surging past $4,200, $4,400, $4,600, and $5,000 in rapid succession on the back of what seemed like nothing. Crypto analysts later explained that the move was a simple result of a combination of a steady uptrend, BTC testing the key $4,200 resistance, and a lack of selling pressure above that.

While their comments make it sound like Bitcoin might be home free for the time being, some aren’t so sure. Josh Olszewicz, an analyst that writes for Brave New Coin, recently remarked that BTC’s daily relative strength index (RSI) reading hit 85 in this recent move. While this is clearly overbought (x > 70), what makes this even crazier is the last time this measure issued such a reading, it was mid-December 2017 — the peak of the last cryptocurrency craze.

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