The Gods Tips - Investing and Stock News
No Result
View All Result
  • Investing
  • Stock
  • Editor’s Pick
  • Economy
  • Bitcoin
  • Investing
  • Stock
  • Editor’s Pick
  • Economy
  • Bitcoin
No Result
View All Result
The Gods Tips - Investing and Stock News
No Result
View All Result
Home Bitcoin

Overbought Or Ready To Rip? Bitcoin Daily RSI Reaches Explosive Levels

by
January 18, 2023
in Bitcoin
0
Overbought Or Ready To Rip? Bitcoin Daily RSI Reaches Explosive Levels
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

Bitcoin price is showing signs of getting overheated on daily timeframes using the Relative Strength Index (RSI). The tool, typically used to spot overbought conditions, is at one of its highest levels ever historically.

However, an elevated RSI reading in BTCUSD is deceiving, leading to some of the most dramatic moves ever on the cryptocurrency’s price chart. Here is a closer look at what happens when Bitcoin price action gets this hot.

Bitcoin RSI Reaches Highest Level Since Early 2021

After breaching above $20,000, onlookers are wondering if a possible bottom is in for Bitcoin, but remain skeptical after such a long, arduous downtrend.

Bears have good reason to expect a pullback: Bitcoin has become extremely overbought according to the Relative Strength Index. In fact, the top cryptocurrency is more overbought than at any other point during the entire bear trend.

Bulls, on the other hand, could be ready to push prices higher. In the past, the RSI has only reached such an elevated level – a reading of 90 or above – during the most intense bullish movements of recent years.

Why Crypto Could Be Ready To Rip Higher Once Again

Bearish investors and traders might be quick to claim that this time is different, considering the Fed raising interest rates, the backdrop of war and recession, and more. But bulls have much more data on their side, and momentum at their backs.

In fact, bulls have the entire history of BTCUSD price action to prove that the Relative Strength Index reaching such highs have led to the greatest sustained gains in crypto.

Bull markets are characterized by recurring phases of extreme RSI readings. Bull markets also end at such extremes, but typically only after at least a series of three waves. Bear market peaks, throughout the entire lifetime of BTCUSD price action, always fail to reach such highly elevated RSI.

The Relative Strength Index was created by developed by J. Welles Wilder – who also developed the Parabolic SAR, Average Directional Index, and Average True. The technical tool measures the speed of the change of price movements.

Although readings above 70 and below 30 typically represent overbought or oversold conditions, a reading of 90 only occurs with an extremely fast and strong move. Such fast and strong moves tend to appear more often in a bull market than a bear market.

Cryptocurrencies can remain notoriously overbought during periods of FOMO. Is that exactly what we’ve seen in Bitcoin recently? And will the number one cryptocurrency by market cap rip higher, or ultimately see a rejection here due to such overbought conditions?

Previous Post

Maryland Gov. Wes Moore announces more Cabinet appointments

Next Post

California bill would allow Mexican students near border to pay in-state community college tuition

Next Post
California bill would allow Mexican students near border to pay in-state community college tuition

California bill would allow Mexican students near border to pay in-state community college tuition

  • Trending
  • Comments
  • Latest
Combining Price Structure, MACD & ADX

Combining Price Structure, MACD & ADX

0
Steady PutWrite 2022 Year In Review

Steady PutWrite 2022 Year In Review

0
How Much Do You Need to Start Trading Options?

How Much Do You Need to Start Trading Options?

0
Options Strategies for Small Accounts

Options Strategies for Small Accounts

0
Combining Price Structure, MACD & ADX

Combining Price Structure, MACD & ADX

January 26, 2023
GNG TV: Airlines, Casinos, & Luxury… Oh My!

GNG TV: Airlines, Casinos, & Luxury… Oh My!

January 26, 2023
Dogecoin (DOGE) Soars 8%, But An Uptick In This Metric Suggests A Pullback

Dogecoin (DOGE) Soars 8%, But An Uptick In This Metric Suggests A Pullback

January 26, 2023
Cardano Adds 50,000 New Wallets As ADA Market Cap Surges

Cardano Adds 50,000 New Wallets As ADA Market Cap Surges

January 26, 2023
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Recent News

Combining Price Structure, MACD & ADX

Combining Price Structure, MACD & ADX

January 26, 2023
GNG TV: Airlines, Casinos, & Luxury… Oh My!

GNG TV: Airlines, Casinos, & Luxury… Oh My!

January 26, 2023
Dogecoin (DOGE) Soars 8%, But An Uptick In This Metric Suggests A Pullback

Dogecoin (DOGE) Soars 8%, But An Uptick In This Metric Suggests A Pullback

January 26, 2023
Cardano Adds 50,000 New Wallets As ADA Market Cap Surges

Cardano Adds 50,000 New Wallets As ADA Market Cap Surges

January 26, 2023
  • About Us
  • Contact Us
  • Email Whitelisting
  • Terms and Conditions
  • Privacy Policy
  • About Us
  • Contact Us
  • Email Whitelisting
  • Terms and Conditions
  • Privacy Policy

Disclaimer: Thegodstips.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.
Copyright © 2023 Thegodstips.com

No Result
View All Result
  • Investing
  • Stock
  • Editor’s Pick
  • Economy
  • Bitcoin

Disclaimer: Thegodstips.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.
Copyright © 2023 Thegodstips.com