BTCUSD: Daily RSI Hints at Different Rythm in This Market Cycle
Updated
No big revelations, just an interesting observation.
What can we know from the RSI?
The RSI is a momentum indicator. Looking at the daily RSI and price during the last market cycle (#3), it looks like there was a consistently strong up trend through-out the bull market and although there were corrections, this did not "stall the engine" . This time there seems to be clear 2 larger cycles; with larger pull-backs, instead of many small ones.
Looking at the RSI on the weekly chart (see below in updates), it is clear "the balloon was kept in the air" throughout the last bull market; never going below 54; this is not the case this time.
My assumption is: as the cryptocurrency market matures, people are more confident thus the larger and longer upswings. People also need to take profit especially those who have been in for many years already; this explains the corrections of course.
Prediction: there will be 1 more larger local cycle before the next bear market.
Any questions of comments, leave down below.
What can we know from the RSI?
The RSI is a momentum indicator. Looking at the daily RSI and price during the last market cycle (#3), it looks like there was a consistently strong up trend through-out the bull market and although there were corrections, this did not "stall the engine" . This time there seems to be clear 2 larger cycles; with larger pull-backs, instead of many small ones.
Looking at the RSI on the weekly chart (see below in updates), it is clear "the balloon was kept in the air" throughout the last bull market; never going below 54; this is not the case this time.
My assumption is: as the cryptocurrency market matures, people are more confident thus the larger and longer upswings. People also need to take profit especially those who have been in for many years already; this explains the corrections of course.
Prediction: there will be 1 more larger local cycle before the next bear market.
Any questions of comments, leave down below.
Note
Weekly chart:
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