Bitcoin reaches most overbought level in nearly 2 years

Bitcoin’s Relative Strength Index has climbed above 80, reaching readings near 84 to 86, territory the asset hasn’t touched since November 2024. The move came on the back of a violent short squeeze that liquidated more than $3B in short positions within a single 24-hour window, forcing a cascade of buying that sent prices rocketing toward $80K. What happened Bitcoin broke out of a consolidation range between $62K and $71K that had held for weeks. Prices surged roughly 8% to 12% within just one to two days, reaching multi-month highs near $79.5K to $80K before settling into a range around $77K to $77.8K. The catalyst was a textbook short squeeze. Over $700M in short positions were cleared in a matter of hours, and the total liquidation figure crossed $3B in a single session. The Crypto Fear & Greed Index, which had been sitting at depressed levels around 34 not long ago, jumped into “Greed” territory with readings between 62 and 72. Why overbought doesn’t always mean overcooked During strong bullish trends, Bitcoin’s RSI has stayed elevated for extended periods, sometimes weeks. The November 2024 overbought reading didn’t mark a top. It marked the beginning of a broader move hig...