Technical overbought readings in a new regime are to be expected and not to be feared if you are trading on the right time horizon. But we are bumping against where major resistance is clustered for Bitcoin. And already we're starting to see altcoin leverage as expressed as altcoin/Bitcoin open interest, build to uncomfortable levels. Don't get over your skis
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US semiconductor stocks went from overbought to oversold in weeks:
The Semiconductor Index, SOX, fell -17% below its 200-day moving average on Thursday, its largest negative divergence since April 2025.
This is also the 2nd-largest such deviation since the 2022 bear market.
By comparison, during the 2008 Financial Crisis and following the 2000 Dot-Com Bubble burst, this metric dropped to -49% and -52%, respectively.
This marks a sharp reversal from June, when SOX traded +75% above its 200-day moving average, its largest positive deviation since 2000.
In other words, semiconductor stocks have shifted from extremely overbought to oversold territory in just 5 months.
Semiconductor stocks just saw one of their most violent swings in decades.