Optimism about the Senate passing the Clarity Act (which is focused on crypto) and an industry meeting with the President this week have sent crypto into a massive two-day gain of more than 10%. Bitcoin has also ripped across its 200-DMA and is now over four standard deviations overbought as it trades to the highest levels since the start of the summer.
Ethereum is in a similar position after surging across its 200-DMA yesterday. As shown, it’s similarly overbought near-term in addition to ending a streak of time below its 200-DMA that lasted almost a year. Bitcoin also broke a similar streak.
Historically, the current distance from the 50-DMA for both Bitcoin and Ethereum (each adjusted for recent volatility) is historic.
Subscribe below to read the rest of this analysis looking at how Bitcoin and Ethereum have done historically after moving up to similarly overbought levels.
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