I noticed something concerning in traditional markets recently. The NASDAQ 100 RSI hit 75 — firmly in overbought territory. This matters more than most crypto traders realize.
Why stock markets affect crypto:
Crypto typically correlates with stocks during downturns
Fed Chair Jerome Powell called markets “fairly overvalued”
Historical RSI peaks at 75 often trigger pullbacks
Looking back at previous cycles, I see a pattern. Every time the NASDAQ reached these overbought levels, we saw significant corrections within weeks.
February 2023 saw a decent pullback after similar readings. June 2023 brought another correction. The July 2023 peak led to major selling through October.
Bitcoin’s Current Technical Picture
I’m tracking Bitcoin at $113,000 right now. The technical indicators paint a mixed picture that has me cautious.
