Bitcoin - RSI as a tool to detect the bottom?
Hi Guys. Bitcoin is one of my favorite assets to trade. I love studying the charts and learning about it, always looking for new ways to see how to make the most out of BTC. This is for educational purpose and is by no means financial advice. Just something ive observed and decided to share.
This analysis is on the 6 day time frame. I think for this analysis it brings in alot of clarity for me.
So i got 2 indicators on my chart:
1.Yellow line is the 21 dma (moving average)
2. RSI
As you can see in past history, everytime Price action went below the yellow MA and RSI was below the Green trendline i drew, it indicated a bottom and an amazing time to buy bitcoin for long term.
There are 3 data points supporting this.
Coming to recent prce action and the 15k price around November, i believe could of been the bottom for this market cycle. Notice how the RSI shot up past the green line & is above white line.
The white horizontal line i drew on the RSI, in past history acts as SUPPORT during bull markets and price spikes. We are currently in the process of coming down to test this line. If it holds, i believe we are in the early stages of this next cycle. If it breaks, it could invalidate this thesis. But ultimately, we are currently in a critical point in Bitcoins price action.
I believe also in the short term price action will come down to test the 21 dma (yellow line). I would like to see it act as support. But anything can happen.
If RSI goes below Greenline and price action below yellow line, it could act as another opportunity to buy!
Let me know what you think.? Think the bitcoin bottom is in? Or we got more pain coming?
Disclaimer: this is not financial advice. I am not a financial advisor. When investing or trading, make sure you have your own strategies in place and remember to protect yourself with stop loss.
This analysis is on the 6 day time frame. I think for this analysis it brings in alot of clarity for me.
So i got 2 indicators on my chart:
1.Yellow line is the 21 dma (moving average)
2. RSI
As you can see in past history, everytime Price action went below the yellow MA and RSI was below the Green trendline i drew, it indicated a bottom and an amazing time to buy bitcoin for long term.
There are 3 data points supporting this.
Coming to recent prce action and the 15k price around November, i believe could of been the bottom for this market cycle. Notice how the RSI shot up past the green line & is above white line.
The white horizontal line i drew on the RSI, in past history acts as SUPPORT during bull markets and price spikes. We are currently in the process of coming down to test this line. If it holds, i believe we are in the early stages of this next cycle. If it breaks, it could invalidate this thesis. But ultimately, we are currently in a critical point in Bitcoins price action.
I believe also in the short term price action will come down to test the 21 dma (yellow line). I would like to see it act as support. But anything can happen.
If RSI goes below Greenline and price action below yellow line, it could act as another opportunity to buy!
Let me know what you think.? Think the bitcoin bottom is in? Or we got more pain coming?
Disclaimer: this is not financial advice. I am not a financial advisor. When investing or trading, make sure you have your own strategies in place and remember to protect yourself with stop loss.
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