Relative Strength Index Bitcoin Analysis & RSI Bitcoin Signals

Developed by J. Welles Wilder, explained in the book "New Concepts in Technical Systems".

RSI is the most popular/liked indicator & it's a momentum oscillator and a bitcoin trend following indicator. RSI compares a bitcoin price magnitude of the recent bitcoin price gains against its magnitude of the recent losses bitcoin price losses and draws this data on a scale of values which ranges between 0-100.

RSI measures the momentum of bitcoin crypto; values/readings above 50 signify bullish momentum while readings below 50 center-line signify bearish energy.

Relative Strength Index Bitcoin Indicator - RSI Crypto Indicators

RSI is drawn as a green line
Horizontal dashed lines are plotted to identifying over bought ==22==& oversold levels are i.e. 70/30 levels respectively.

Bitcoin Analysis and Generating Signals

There are several different techniques used to trade, these are:

50-level Cross over Signals

Buy trade signal - when the indicator crosses above 50 a buy/bullish signal is given/generated.
Sell Bitcoin Signal - when the indicator crosses below the 50 center mark a sell/bearish signal is given/generated.

RSI Buy Sell Bitcoin Signals - RSI - RSI BTCUSD Indicators

RSI Bitcoin Patterns

Traders can draw bitcoin trend lines & map out chart patterns on the RSI indicator. The RSI commonly forms cryptocurrency patterns such as head and shoulders cryptocurrency pattern which might not have formed clearly on the bitcoin price chart.

Bitcoin Support/Resistance Break outs

RSI is a leading indicator & can be used to predict the Support & Resistance Breakouts before bitcoin price breaks its support/resistance level. RSI uses the swing failure signal to predict when bitcoin price is about to break resistance and support zones.

Support & Resistance Breakout

Swing Failure - Support and Resistance Breakout

Overbought/Over-sold Conditions on Trading Indicator

Overbought levels above 80
Oversold- levels below 20

These levels can be used to generate bitcoin signals like when RSI turns up from below 20 after over-sold, buy & sell when the RSI crosses to below 80 after overbought, sell. These signals aren't suitable for Bitcoin because they are prone to a lot of whipsaws.

Divergence Bitcoin Trade Setups

Divergence trading is one of the analysis method used to trade the reversals of the bitcoin price trends. There are 4 types of divergences which can be traded and transacted with this trading indicator covered & discussed ==22==in the divergence guide on this web site.

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