Overbought is not a buy signal, it's a warning.

Bitcoin has been hovering around 74k for three weeks.
Just opening the chart, overbought signals fill the screen. But after three weeks of overbought conditions, it’s still selling.
The most common mistake here: mistaking "it’s about to rebound" for "it will rebound."
Overbought only tells you that the price has dropped quite a bit; it doesn’t tell you if it’s finished falling.
Almost every cycle when entering a deep bear phase, a 30% drop in the oversold zone is nothing new.
The biggest loss I’ve suffered was when I entered thinking "it’s about to be over."
Then I realized the market’s understanding of "about to be over" has nothing to do with mine.
The true bottom never appears when the oversold signal lights up; it appears when everyone has given up on discussing where the bottom is.
🚨 About two weeks ago, I repeatedly warned in tweets
That we are about to enter a deep bear phase!
Waiting for a solid bullish candle doesn’t have to take long.
But before it appears, don’t use your positions to guess when it will come.