Jim Makos / Flickr / jimmakos.com/photography
Voyager

The cryptocurrency market pulled back on Thursday as Bitcoin (BTC) dropped more than 4% to around $5,000 and the market lost nearly $20 billion in total value.

While many analysts failed to predict the latest drop, often citing near-term bullish predictions of $6,000-$7,000, data provided from crypto index platform AltDex suggested the market was primed for a period of consolidation.

Over the past month, the AltDex 100 Index (ALT100), a benchmark index for large-cap cryptocurrencies that doesn’t include stablecoins, surged more than 29.5%, marking one of the best 30-day periods in the last year.

That surge in the index level was enough to bring the ALT100’s relative strength index (RSI) to just shy of 90. Traditionally, an asset is considered overbought when the RSI is above 70 and oversold when it’s below 30. This suggests the ALT100’s RSI of around 90 was a major signal that the crypto market was ready to pull back.

AltDex 100 Index RSI

Shortly after, the index value dropped more than 7% as Bitcoin and major altcoins retreated…

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