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Bitcoin RSI: "Still not out of the woods"
Will we see a buy signal in the near future?
Jesse Olson & Stu
April 11, 2024
Today, Jesse tweeted out this chart, and said:
"Still not out of the woods, yet" based on the #Bitcoin daily chart below. There hasn't been a buy signal on RSI 2.0 indicator & hasn't broken above the channel that has formed.
Will we see a buy signal in the near future? 👇
Bitcoin’s RSI
Let’s break down what this means.
RSI is a measure of momentum
RSI tells us the rate of change of price over the last 14 candles. Is price moving up or down more quickly than before?
Most of the time, price and RSI are correlated. Price moves up, and RSI moves up. Or price goes down and RSI goes down.
RSI and price correlated
Other times, price and RSI decouple.
For instance, price in the chart below was going up quickly, and then it went sideways. Going sideways meant a decrease in the rate of price growth, so RSI went down.
RSI down, while price sideways
Similarly, price went up quickly in this chart—so RSI went up—and then price started going up more slowly—so RSI started going down.
Price up slower so RSI goes down.
RSI is going sideways right now
Right now, price and RSI are synced. Price is going sideways (maybe trending up) and RSI is going sideways.
That’s what a flat channel tries to communicate—the trend is flat over that time period.
What Jesse’s looking for is for RSI to break the channel—either to the upside or downside—as an early indicator of which way price is heading next.
RSI is in a sideways channel, while price is trending up.
What RSI Buy / Sell Signals Mean
If RSI indicate a change in price trends, then the RSI buy and sell signal indicate a change in the RSI trend. These can be early warnings for a change in price trend too.
RSI buy and sell signals
Hopefully that helps give a more in-depth explanation of Jesse’s tweet.
If you’re interested in these kinds of indicators, Jesse goes into detail on them in his 60+ hours of recorded coaching and there’s a community of snipers looking forward to helping in the Discord.
"Still not out of the woods, yet" based on the #Bitcoin daily chart below. There hasn't been a buy signal on RSI 2.0 indicator & hasn't broken above the channel that has formed.
Will we see a buy signal in the near future? 👇 twitter.com/i/web/status/1…
— Jesse Olson (@JesseOlson)
7:26 PM • Apr 11, 2024
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The contents of this newsletter are expressed in my opinion only, none of which is financial advice. Always do your own research as this information is intended for educational & entertainment purposes only.
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