Bitcoin Price Dips Below $80K Amid Overbought Conditions

Bitcoin's price slipped below $80,000 after reaching a multi-month high above $81,200 due to overbought conditions and resistance near its previous range high.

The daily relative strength index (RSI) reached 82.44, placing Bitcoin deep inside overbought territory. This increase the risk of consolidation or a pullback as early buyers lock in gains.

Despite this, Bitcoin remains above every major moving average displayed on the daily chart, including the 20-day simple moving average at $68,284 and the 200-day SMA at $69,166.

The 4-hour chart shows that the wider move retains considerable strength, with an average directional index of 56.52, far above the 25 threshold generally associated with an established trend.