Two-Year Uptrend in Bitcoin May Come to an End: Is a Difficult Process Beginning? - Coin Bulletin

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Fairlead Strategies analysts believe that the price of Bitcoin is at risk due to the 'stochastic overbought decline'.

The price of Bitcoin has risen above $60,000 with a 300% increase from $15,470 since November 2022. However, this upward trend could reverse.

Two-year trend may end

This indicator is used to compare the current price of an asset with a price range over a specific period. Generally calculated over a period of 14 days, weekly or monthly, the indicator is measured on a scale from 0 to 100.

The signal called "overbought drop" occurs when the indicator moves down from above 80, indicating a weakening of the upward trend.

Bitcoin's 14-month indicator has dropped below 80. If this continues until the end of the month, it could mean that this signal has been triggered.

Fairlead Strategies analysts said, “Bitcoin's monthly chart is showing an expected overbought decline in the monthly indicators. If this is confirmed at the end of the month, it will be a negative factor indicating the end of the cyclical rise that started after the 2022 bottom”.

Bitcoin may face a challenging period

monthly candlesticks chart with Ichimoku cloud. Lower panes include stochastics and MACD. (Fairlead Strategies):format(jpg)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/2BQYZOTIRJENHB2A2RJOUFDYKU.png)

In this indicator, bars in the MACD histogram are also narrowing with the expected overbought decline, and a flat Ichimoku cloud (blue shaded area) is seen. According to Fairlead Strategies analysts, this means that a "challenging environment" may arise in the future.

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