GTI Global Intensity Indicator: BTC may overbought after recent jumps, and price adjustment is a foregone conclusion?

GTI Global Intensity Indicator: BTC may overbought after recent jumps, and price adjustment is a foregone conclusion?

The sudden rebound in prices has kept investors optimistic about a bearish market for more than a year. However, given that the Bitcoin GS indicator has reached 89.66, experts believe that the overbought condition has been triggered and warned that price adjustments may be made in the near future.

Bitcoin GS indicator flashing warning signal

The GTI Global Strength Indicator indicates whether the underlying entity is oversold or overbought. The indicator ranges from 0 to 100, the former indicating a high oversold condition. This usually happens when investors sell a large number of specific items in response to recent events. On the other hand, a number close to 100 indicates that the entity is in a highly overbought condition and may trade at a premium.

On April 2, 2019, after an algorithmic order triggered $100 million to acquire the world's oldest digital currency, Bitcoin witnessed a sharp rise in prices. The price of Bitcoin has risen by more than $1,000 in a few hours. It has exceeded $5,000 for the first time since November 2018.

As investors begin to cover new positions, this rally has triggered a buying spree in the broader cryptocurrency market. The purchase resulted in Bitcoin's global strength indicator reaching 89.96 – indicating that investors may act too fast.

What is the reliability of the Bitcoin GS indicator?

So far, the results of the GS indicator applied on Bitcoin (BTC) have been mixed. The indicator pointed out three times in a row from November to December 2017 that the cryptocurrency was overbought. This situation should lead to market adjustments, but on the contrary, the price of Bitcoin has risen in all three instances.

However, since then, the indicator has made seven correct predictions for the price of Bitcoin.

Most notably, the recent price rebound has not been supported by changes or enhancements in Bitcoin fundamentals and future roadmaps. However, many in the cryptocurrence world are still very optimistic and soon announced that it is the end of the bear market. (Cin Cong Finance)

We will continue to update Blocking; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Blockchain

Is it true that the market value of cryptocurrency is a hero?

Little Jesus will never forget the day before many years ago. In the early days of the society, in order to find the ...

Market

Economist: Bitcoin has the fastest growth rate and the highest increase among all assets, and one million is just around the corner?

In December 2017, Bitcoin soared to a record high of 20,000 knives. The ever-rich story of the rich also attracted a ...

Market

Bitcoin ebbs, is there still an optimal solution for digital currency?

In any case, Bitcoin's open source code allows technology to be shared, opening up the "blockchain" th...

Blockchain

The community is hot 丨 whether Bitcoin halving can bring rise, see what the industry says

Every four years, the block reward that Bitcoin miners can receive is reduced by half, which is the "half event&...

Blockchain

Analysis | This technical indicator implies that Bitcoin will rise to $ 26,000 when halved

According to the re-emergence of important technical indicators that once triggered a 170% increase in Bitcoin, Bitco...

Market

US Finance Minister Mnuchin presents a new pessimistic view of the future of Bitcoin

US Treasury Secretary Steven Mnuchin today expressed a new bearish view of Bitcoin, saying he may not talk about the ...