Bitcoin again in overbought and below 4000$

Bitcoin's GTI Global Strength Indicator, which measures intraday volatility, once again went into an overbought area. The cryptocurrency, however, remains below the psychological level of $ 4000, and according to many analysts this level will not be broken again. Analysts' expectations are for new pessimism in the digital currency market.

Analysts compare the situation in February, when Bitcoin fell 3% just after the same signal from the indicator.

Levels are currently inappropriate for long positions as the price remains near the tops and under resistance which makes the Risk / Reward unprofitable. Assuming that such a 3% price adjustment is forthcoming, it would be good to be in a cautionary mode for buying opportunities in case of a potential drop.

If we look at the likelihood that the cryptocurrency has found a local minimum around the lowest values ​​since the last consolidation, we can look for positioning after a 2 to 3% correction with a target target of even $ 4700.

For now, short positions also seem irrational since the diagonal support of the last short-term upward movement survived:

Charts: Used with permission of Bloomberg Finance L.P.  and Varchev Absolute Trader 5

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