Bitcoin Stays Above $91,000—But One Technical Indicator Spells Trouble
Bitcoin‘s (CRYPTO: BTC) relentless climb over the $90,000 level has investors cheering, yet a specific technical indicator is sparking caution among experts, suggesting potential vulnerability in the current rally.
What Happened: The stochastics indicator, which has reached 90%—a level typically associated with overbought conditions—is prompting market watchers to advise caution, even as the bull market remains intact.
Bitcoin is trading at $91,160 on Thursday morning, according to CoinGecko data.
According to a 10x Research report on Thursday, while Bitcoin’s strong performance signals a bullish outlook, the high stochastics reading historically signals a temporary cooling off period.
Elevated stochastics have, in the past, coincided with near-term corrections, adding a layer of caution amid the ongoing market exuberance.
“While we’re not bearish,” analysts at 10x explain, “we prefer hedging long positions with assets …
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