- Bitcoin has dragged itself back to the $98,000 price range.
- Its Funding Rate has remained positive for weeks.
As Bitcoin [BTC ($86,293.00)] flirts with the $100,000 mark, questions arise about the sustainability of its current rally.
While enthusiasm runs high among investors, several market indicators suggest that caution may be warranted.
So, AMBCrypto has analyzed three critical areas to understand whether Bitcoin is entering an overheated phase.
Bitcoin’s price momentum and overbought conditions
The daily BTC/USD chart revealed Bitcoin’s sharp upward trajectory, as the king coin broke out from consolidation near $65,000 just weeks ago.
The Relative Strength Index (RSI) stood at 78.6, indicating that Bitcoin was in overbought territory. Historically, RSI levels above 70 often precede short-term corrections as traders lock in profits.
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