Bitcoin (BTC) bulls may be in for a disappointment, Fairlead Strategies said, as a monthly technical indicator has flashed an “overbought downturn” signal.
The stochastic indicator, developed by George C. Lane in the 1950s, recently turned down from above 80, indicating a loss of upward momentum. The indicator oscillates between 0 and 100 with readings above 80 implying overbought conditions. Readings below 20 suggest the opposite. A turn lower from overbought levels represents a so-called overbought downturn, which indicates a weakening of upward momentum.
“At the end of August, bitcoin confirmed an overbought downturn in its monthly stochastics in a setback,” Katie Stockton, Fairlead Strategies’ founder and managing