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 ￰0￱ 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 ￰1￱ 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 ￰2￱ technical analysis.) At the time of writing, Bitcoin is trading at roughly $121,750, down 0.59% on the ￰3￱ the RSI or CMO flatten or fall while the price remains the same or goes up, a bearish divergence would become ￰4￱ 24-hour price.