Data shows bitcoin most overbought since 2017: parabolic phase or impending crash?

Bitcoin is currently at its most expensive levels in 2019.

According to the GTI Global Strength Indicator-a technical analysis tool that gauges intraday crypto volatility, bitcoin is currently in 'overbought' territory-suggesting it could be entering a "Parabolic phase," or be prepared for another downturn.

According to the most recent data from the GTI Global Strength Indicator, the rise could indicate impending retracement, or worse.

The GTI Global Strength Indicator showed that the coin was the most overbought during its run-up to nearly $20,000 in December 2017.

While the surge in bitcoin's price might spell profit for traders and short-term investors, many experts have questioned whether or not the gains are.

An overbought position often correlates to price drops as the market gets more and more saturated.

The last time bitcoin was overbought this much, it plummeted down from its all-time high of $20,000 in December 2017 to around $6,000 in February 2018.

David Tawil of ProChain Capital said that Bitcoin's price surge isn't a particularly comforting development.

Bitcoin could be entering another "Parabolic phase." This means that the world's largest coin could be set for another massive bull run, possibly even larger than the one that happened in 2017, as suggested by Brandt.

Some are saying that bitcoin is yet to bottom out, predicting a drop below $2,000.