Bitcoin's rise: Is it overbought?

Bitcoin has risen above $30,000 per coin, but is it overbought? Yahoo Finance's Jared Blikre breaks down the numbers.

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RACHELLE AKUFFO: Powell's crypto commentary in front of the house on Wednesday sent Bitcoin surging now hovering around $30,000. But is the cryptocurrency being overbought? We have Yahoo Finance's reporter Jared Blikre with a breakdown for us. Hey, Jared.

JARED BLIKRE: Hey there, Rochelle. Just look at the green here. This is only over the last 24 hours, but Bitcoin, Ethereum each up for more than 1%. This comes after an interesting day not only with Powell in front of Congress, but also some of those Bitcoin ETF service providers they have filed for a new Bitcoin Cash ETF. That is a spot ETF or excuse me, a Bitcoin spot that trades what it does in the cash market as opposed to the futures.

And this has important implications because we know Gary Gensler has been coming down pretty hard this year over on a lot of entrance into the crypto space. All of these lines here on this chart represent a filing or an expected filing against a member of the Bitcoin community. Here we have the SEC suing Binance and its CEO.

We also have Coinbase as well here, and that was at the recent lows. But what I really want to point out is that we are in a technical pattern right here. We have an uptrend overall. You can call this a bull flag.

And I think the market was just looking for a catalyst to break out. And it did to the upside here. That is what it tends to do continuation of the overall trend.

But one thing I have been noticing is the correlation with tech, and especially the mega-cap tech stocks has not been holding true over the last few days. Sometimes markets decouple, sometimes they come back together. But you take a look over the last four days, this blue line, the cyan line down here that is the NASDAQ 100, which is slightly down actually down about 1 and 1/2 percent.

And then we have the ProShares Bitcoin ETF, BITO that is up about 18%. So quite a big divergence there. And the divergence didn't start today. In fact, we've been seeing this for some time, a decoupling between what was, I would say, last year a close correlation between the stock market and crypto and now a little bit different.

Here's a year to date, and the steady cyan line right here this is the QQQ that we were just looking at. And then we have BITO, that's the Bitcoin proxy I'm looking at here. Here is that bull flag. Even though it is a bull flag, you'll notice the trend is down over this very short period of time.

But then we finally got resolution popping back up to the upside here. And just to give you an idea of how much more volatile crypto is than the ordinary market, we can see a lot of these swings in here tend to be a lot bigger when we consider what's happening in the crypto space. So overall, I'm just going to go back to our heatmap here. I'm going to show you what's happened over the last four days-- really positive technical action.

But to answer the original question, is Bitcoin overbought right now? It could be a little bit overbought. Here's that year-to-date chart. I was looking at one measure of being overbought which is RSI. It's a scale of 0 to 100. It's not even past that 70 period.

And so anybody looking at a chart might say, well, it has a little bit to go. Based on the technicals here, you'll see that it almost matched this high or actually did exceed this high right here. And that would probably be cause for a pause, maybe a little bit more, hard to say.

RACHELLE AKUFFO: Indeed, I know a lot of crypto enthusiasts been waiting for that breakout moment. We'll see if this can hold. A big thank you there. As always, our very own Jared Blikre there.