(Bloomberg) -- Bitcoin and most other major cryptocurrencies were trading lower, bucking the recent trend of outperforming traditional risk assets such as US stocks during this year’s rebound in prices. 

The largest digital currency by market value fell as much as 3.1% and was trading at about $23,065 as of 4:07 p.m. in New York. A range of coins including Ether were also in the red, though an index of the 100 biggest coins showed gains, rising about 2%. The Nasdaq 100 Index rose 2%. 

It has been a promising start to the year for Bitcoin, which in 2022 fell 64% in its second-worst annual performance on record. While daily gains have been modest, the overall trend has been solidly upward. 

“The economic backdrop has changed since we have hit those lows back in mid-November,” said Fiona Cincotta, senior financial markets analyst at City Index. “That is helping risk assets generally speaking, including Bitcoin.”

Year-to-date, Bitcoin has gained nearly 40%, having jumped from the $16,000 to the $23,000 range. It is crucial that the token continues to constructively digest the preceding spike, Frank Cappelleri, founder of CappThesis, said. Any prospective decline that holds above $21,500, he said, will keep the breakout intact. 

The coin’s 14-day relative strength index now hovers at 74. A reading of 30 or below is generally interpreted as an indication of an oversold security, while 70 or above signifies an overbought one. 

Historically, overbought conditions have been bullish for Bitcoin. The last three times the RSI crossed above 80 were after a considerable downturn, Cappelleri added. Bitcoin’s RSI last week hovered at 90, a level not seen since 2020.

Alongside higher prices, however, comes an increased motivation for holders and miners to take exit liquidity, Glassnode said in its “The Week Onchain” newsletter, especially after a “prolonged and painful bear of 2022.”

©2023 Bloomberg L.P.