BTC/USD Daily Oversold
8000 support was shattered as news from China accelerated the selloff. Many had expected this 8000 level to act as support however we have dropped significantly below that. It looks like we are stuck in this falling channel, however we are coming to some areas of potential support. The trend line started back in February is now being tested while the Daily RSI is reading very oversold. A simple look at the daily chart shows that buying on Daily oversold readings is a nearly full proof strategy.
Highlighted in the chart above are the past few times the daily RSI has been oversold. If you were to buy the oversold reading and sell exactly on month later you would reap an average a return of ~50%. This average takes into account the -25% return of buying the oversold reading in November 2018, however this would only reap a negative return if you sold exactly one month later. Holding until today would have returned ~70%.
So the question is, will this dip in the RSI act any differently then it has countless times in the past? Doubt it. I am a confident buyer at this time.
Highlighted in the chart above are the past few times the daily RSI has been oversold. If you were to buy the oversold reading and sell exactly on month later you would reap an average a return of ~50%. This average takes into account the -25% return of buying the oversold reading in November 2018, however this would only reap a negative return if you sold exactly one month later. Holding until today would have returned ~70%.
So the question is, will this dip in the RSI act any differently then it has countless times in the past? Doubt it. I am a confident buyer at this time.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.