Bitcoin (BTC) price drops 15% below overbought threshold as BTC futures flip bearish

Bitcoin's (BTC) price hit fresh all-time highs of nearly $112,000 on May 23, gaining 50% from its April 1 lows.

Bitcoin (BTC) price hit a new all-time high of nearly $112,000 on May 23, gaining 50% from its April 1 lows. As BTC price now shows “signs of easing momentum” and begins to consolidate, here are three key takeaways from the latest Glassnode report.

Bitcoin RSI drops 15% and is now below overbought threshold

BTC’s recent run to $111,000 pushed the daily relative strength index (RSI) into the overbought zone at 79.6. However, “signs of easing momentum” have emerged as the RSI dropped by 15% to 67, market intelligence firm Glassnode said in its latest report.

The decreased buying pressure is also evident in the declining perpetual central bank balances (CVD), which went from -$425.4 million to hit lows of -$608.2 million, marking a 43% decline. This signals “stronger sell-side flows” and a more cautious stance among traders.

According to the chart below, Bitcoin futures open interest (OI) reached record highs and funding rates increased with BTC’s all-time highs, while the perpetual CVD trended lower.

Per the report, the decreased buying pressure is also evident in the declining perpetual central bank balances (CVD), which went from -$425.4 million to hit lows of -$608.2 million, marking a 43% decline. This signals “stronger sell-side flows” and a more cautious stance among traders.

Bitcoin traders setting $150K price target

Data from Cointelegraph Markets Pro and TradingView showed Bitcoin trading at $109,600 on Friday morning. BTC price has closed above $106,000 the last seven days, reinforcing the importance of this level to buyers.

“Bitcoin is still holding above the 106K level,” said analyst AlphaBTC in a May 27 X post.

An accompanying chart showed Bitcoin trading in an ascending channel in the 12-hour timeframe, with a BTC price target above $120,000.

In a May 22 X post depicting a similar technical setup, AlphaBTC said:

"We might see a drop to 102K, but we'll bounce back up to 115K and beyond."

Using Fibonacci retracement levels, Titan of Crypto predicted a cycle top of $135,000 if it repeated a 2024 pattern in the weekly timeframe.

Fellow analyst Rekt Capital shared his Bitcoin price discovery roadmap, showing that BTC was “transitioning into Price Discovery Uptrend 2,” as shown in the chart below.

This is similar to BTC’s price action between January 2024 and March 2024, when BTC/USD rallied more than 91% to its previous all-time highs above $73,000. According to the analyst, if the same scenario were to play out, BTC could reach its next peak of around $150,000.

As Cointelegraph reported, Bitcoin is looking for its next catalyst to reach the target of $155,000 after successfully retesting the key level at $106,000.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.