Overbought

'Overbought' refers to a situation in the cryptocurrency market where the price of a particular asset has risen sharply and rapidly, potentially beyond its intrinsic value or sustainable levels. It often indicates that the asset is trading at a level that exceeds market expectations and may be due for a correction or reversal in price. Traders and analysts typically use various technical indicators, such as the Relative Strength Index (RSI), to identify overbought conditions.

Example: Bitcoin's price has surged by 30% in the past week, reaching an all-time high. However, the RSI indicator shows that Bitcoin is currently overbought, suggesting that a correction or pullback in price may be imminent.

Case: Ethereum's price has experienced a rapid uptrend over the past month, fueled by positive news and increased investor interest. As a result, many traders consider Ethereum to be overbought, leading to profit-taking and a temporary price decline as market participants reassess the asset's valuation.