Is a Bitcoin crash coming? These signs say yes
Bitcoin’s (BTC) recent rally and new all-time high beyond $126,000 are starting to show signs of overheating on Thursday, October 9, as the daily technical picture flashes historically fairly reliable indicators of a coming correction. Namely, the Tom DeMark (TD) Sequential, which identifies potential reversals by counting consecutive price bars, rose to 9 on the cryptocurrency’s 24-hour chart. This parameter, as on-chain crypto analyst Ali Martinez notes, has been quite accurate this year, as the same value presaged a 7% pullback in July and a 13% drop in August. What’s more, Martinez’s Analysis further suggests that the relative strength index (RSI) of 74.21 is likewise implying that “digital gold” is in the overbought zone. At the same time, the +100 reading on the Chande Momentum Oscillator (CMO), a market momentum measurement that oscillates between -100 and +100 and often peaks just before market reversals, adds further support to the argument. ...