Why Weekly RSI Could Suggest The Bitcoin Bottom Is In
July 19 2022 - 3:37PM
NEWSBTC
Bitcoin price is currently trading at around $23,500 at the time of
this writing, up over 30% from lows and 10% for the week. The
recovery has brought the weekly RSI out of oversold territory after
reaching historical levels. Here is why the setup could be the buy
signal bulls have been waiting for, and how the Relative Strength
Index currently resembles the last bear market bottom. Weekly
Bitcoin RSI Recovers From Historical Oversold Conditions In
technical analysis, sometimes less is more. Traders commonly fill a
chart with lines or indicators, desperately seeking an edge in the
market. When in reality, that edge is patience and watching for the
right signals to buy and sell Bitcoin. Related Reading | Bitcoin
Weekly RSI Sets Record For Most Oversold In History, What Comes
Next? According to the weekly Relative Strength Index, the time to
buy BTC could be near. Comparisons with past bear markets suggest
the signal could put in a long-term bottom. Bitcoin weekly RSI has
recovered from oversold conditions | Source: BTCUSD on
TradingView.com The weekly RSI has risen up out of oversold
conditions to above a reading of 30. This alone is enough for
technical analysts to begin watching for follow-through. A buy
signal on the RSI is generated after the indicator reclaims the
lower threshold at 30, retraces, holds, then pushes past the first
high. The signal is clear during the 2018 bear market bottom and
told the masses it was time to buy BTC. An example of an RSI buy
signal at the 2018 bear market bottom | Source: BTCUSD on
TradingView.com Why The Bear Market Bottom Could Already Be Behind
Us The Relative Strength Index on TradingView includes a moving
average set at default to a length of 14. Bitcoin price action
reclaiming the moving average after recovering from oversold
conditions has in the past put in a significant long term bottom.
The weekly RSI reached the most oversold conditions ever | Source:
BTCUSD on TradingView.com The chart above also demonstrates that
the recent low on the weekly RSI was the most oversold the top
cryptocurrency has ever reached historically. Related Reading |
Bitcoin Monthly Tags Lower Bollinger Band, Tool’s Creator Hints At
Bottom In the past, Bitcoin has always recovered to new record
highs. However, speculative assets can remain overbought or
oversold for longer than expected. What happens next in the case of
this most recent record low on the RSI? Was this the bottom in
crypto? Weekly #Bitcoin RSI analysis could suggest a bottom is in.
What do you think? pic.twitter.com/JSdUlbCo3j — Tony "The Bull"
Spilotro (@tonyspilotroBTC) July 19, 2022 Follow @TonySpilotroBTC
on Twitter or join the TonyTradesBTC Telegram for exclusive
daily market insights and technical analysis education. Please
note: Content is educational and should not be considered
investment advice. Featured image from iStockPhoto, Charts from
TradingView.com
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