Bitcoin’s Global Strength Indicator Shows BTC Is Most Overbought Since December 2017
Bitcoin: Most Overbought Since December 2017
Bitcoin (BTC), the most popular digital asset in the market, has currently reached an overbought record in more than a year. The GTI Global Strength Indicator shows that Bitcoin is the most overbought since it reached $20,000 in December 2017. A few days ago, the digital asset surpassed $5,000 after four months and a half under that level.
Bitcoin Becomes Overbought
In a recent report released by Bloomberg, Bitcoin seems to be in its most overbought moment in over a year.
Mike McGlone, a Bloomberg Intelligence analyst, said that volatility boomed and it the digital asset reached new levels.
On the matter, he commented:
“The market got so compressed, volatility was so low, it just went poof! It broke out. It was released from the cage. Now it’s a question of duration and I suspect when you have such a massive bubble, you’ll always have an overhang of people who need to sell.”
At the beginning of the month, Bitcoin surged from $4,100 to $5,100 in just a few hours. In this way, the virtual currency left the bear market behind and it could be entering a new bull trend in the near future. There are different theories why Bitcoin surged in such a moment, including a massive purchase of BTC through different exchanges.
It is worth mentioning that Bitcoin’s fundamentals have only been growing during the last months and that experts were just expecting a price surge at any moment. Bitcoin bottomed back in December 2018 when each BTC was traded for $3,200. Since that moment, Bitcoin skyrocketed 60%.
At the time of writing this article, Bitcoin is being traded around $5025 and the digital asset has a market cap of $88.59 billion as reported by CoinMarketCap. Now is just time to wait and see whether the digital asset will keep growing or follow the technical analysis and find an equilibrium.