Why Crypto Markets Just Flipped: Danger or Hidden Opportunity Ahead? | by Blend Visions | The Capital | Sep, 2025

Press enter or click to view image in full size

I noticed something concerning in traditional markets recently. The NASDAQ 100 RSI hit 75 — firmly in overbought territory. This matters more than most crypto traders realize.

Why stock markets affect crypto:

• Crypto typically correlates with stocks during downturns
• Fed Chair Jerome Powell called markets “fairly overvalued”
• Historical RSI peaks at 75 often trigger pullbacks

Looking back at previous cycles, I see a pattern. Every time the NASDAQ reached these overbought levels, we saw significant corrections within weeks.

February 2023 saw a decent pullback after similar readings. June 2023 brought another correction. The July 2023 peak led to major selling through October.

Bitcoin’s Current Technical Picture

I’m tracking Bitcoin at $113,000 right now. The technical indicators paint a mixed picture that has me cautious.

Current Bitcoin signals:

• MACD showing downward momentum
• RSI is well below the control line
• Trading below 20 and 50-day EMAs
• Volatility at its lowest levels since 2023