Bitcoin is overbought and could see a two-week pullback, according to this technical indicator
Bitcoin might suffer from a pullback for two weeks or longer, though the crypto has rallied almost 40% so far this year, according to Katie Stockton, founder and managing partner at Fairlead Strategies. The cryptocurrency saw a new short-term "sell" signal from the TD Sequential model, a technical indicator that identifies the exact time of trend exhaustion and price reversal, Stockton wrote in a Thursday note. The signal suggests that bitcoin has been overbought for the short term, and it increases near-term risk to bitcoin's initial support at its 200-day moving average of $19,635, Stockton noted. Bitcoin is trading at around $23,077 Thursday, down 2.8% over the past 24 hours, according to CoinDesk data.
-Frances Yue
(END) Dow Jones Newswires
January 26, 2023 17:13 ET (22:13 GMT)
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