"The monthly chart of bitcoin shows a pending overbought downturn in the monthly stochastics. If confirmed at month-end, it would be a negative catalyst, suggesting the trading range marked the end to the cyclical uptrend from the 2022 low," analysts at Fairlead Strategies said in a note shared with CoinDesk Wednesday.
"Since November 2022, bitcoin's price has surged nearly 300% from lows around $15,470. This remarkable uptrend is now challenged by a looming 'stochastics overbought downturn' signal, according to technical analysis by Fairlead Strategies."
"Stochastics is a momentum oscillator technical analysts and traders use to compare a security's going market rate to a range of prices over a certain period, typically 14 days, weeks, or months. The indicator fluctuates between 0 to 100, with readings above 80 indicating an overbought condition."
"The pending overbought downturn on the stochastic indicator is accompanied by shallower bars on the MACD histogram and a flat Ichimoku cloud, a sign of a 'challenging environment going forward.'"
Collection
[
|
...
]