TL;DR

• Certain on-chain metrics suggest overbought conditions, flashing the sell signal on BTC.
• The Fear and Greed Index is currently in the “Extreme Greed” zone, which could indicate a local top and a subsequent price decline.

The Bearish Signals

Bitcoin (BTC) has been the talk of the town recently. It entered a massive bull run mode since Donald Trump’s win in the US presidential elections last week, with its price reaching a record high of $92,000 on November 13. However, some important factors suggest that it could pull back from these heights.

The first element we will focus on is BTC’s Relative Strength Index (RSI). The technical analysis tool measures the speed and change of price movements, varying from 0 to 100.

Readings above 70 show that the asset might be overbought and headed for a correction. On the other hand, a drop below 30 typically indicates a potential buying opportunity. As of the moment of writing these lines, the RSI is hovering at around 77, flashing the sell signal.

Next on the list is BTC’s Market Value to Realized Value (MVRV), which, like the aforementioned metric, helps traders examine overbought or oversold conditions. A high ratio might