The importance of overbought RSI to play a seller top
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December 19, 2018, cf my Related Idea, I gave you the starting point of this new Bull market thanks (in particular) the RSI 14 oversold.
It was then the first time he was (briefly) ironed under the 30 as a certain January 10, 2015.
The 01/10/2015 was the departure of the previous Bull market: Bitcoin operates by cycles linked in particular to the anticipations of halving.
Today, it's time to report that this same RSI 14 has just entered its overbought area 75-90.
I underline here the fact that this has already happened 8 times since 2012, each time causing a break in the Bitcoin bullrun with each time a significant bearish correction, all clearly visible on my logarithmic scale.
The RSI has so far entered this dangerous zone timidly, so there is still an interesting margin of pump still possible.
However, note that the RSI has just dropped marking a (local?) top as my peak No. 4 in 2017 which had corrected sharply after.
My chart also clearly shows the similarities with the top No. 2 of June 2016: same growth of the RSI from the same dip and correction without reaching its ATH end of 2013 (peak No. 1). But this time there is a very fast growth of the RSI without correction!
So what the RSI is telling us today is that Bitcoin will not be able to reach the $ 20,000 without a correction at least as important as that of June 2016.
For more information, RSI 14 should be regularly monitored in this configuration.
In addition, the RSI invited us to compare the current situation with the peak of June 2016: note that the latter had the major resistance that I traced by a white line, which we unfortunately find today even to $ 9000, see my 2nd white line.
DISCLAIMER: This is not an investment advice. Do not follow any "prophet".
Invest only what you can afford to lose.
It was then the first time he was (briefly) ironed under the 30 as a certain January 10, 2015.
The 01/10/2015 was the departure of the previous Bull market: Bitcoin operates by cycles linked in particular to the anticipations of halving.
Today, it's time to report that this same RSI 14 has just entered its overbought area 75-90.
I underline here the fact that this has already happened 8 times since 2012, each time causing a break in the Bitcoin bullrun with each time a significant bearish correction, all clearly visible on my logarithmic scale.
The RSI has so far entered this dangerous zone timidly, so there is still an interesting margin of pump still possible.
However, note that the RSI has just dropped marking a (local?) top as my peak No. 4 in 2017 which had corrected sharply after.
My chart also clearly shows the similarities with the top No. 2 of June 2016: same growth of the RSI from the same dip and correction without reaching its ATH end of 2013 (peak No. 1). But this time there is a very fast growth of the RSI without correction!
So what the RSI is telling us today is that Bitcoin will not be able to reach the $ 20,000 without a correction at least as important as that of June 2016.
For more information, RSI 14 should be regularly monitored in this configuration.
In addition, the RSI invited us to compare the current situation with the peak of June 2016: note that the latter had the major resistance that I traced by a white line, which we unfortunately find today even to $ 9000, see my 2nd white line.
DISCLAIMER: This is not an investment advice. Do not follow any "prophet".
Invest only what you can afford to lose.
Transaction en cours
In progress: $ 8800 -> $ 8100Dynamism of Chartism:
when traders no longer see a bullish ascending triangle (in white), but now a bearish rising wedge (in red)...
Oblique on which it is imperative to rebound now:
Transaction en cours
The rebound on my oblique in red took place:Transaction en cours
This rebound 8000 -> 8300 makes it possible to blow a moment ......but look closely at my initial chart: the RSI 14 dropped from 80 to 72
...but, never on the 8 historical peaks that I surrounded you in red, you don't see the RSI fall back then go back direct: it always follows a much larger dump! Only when the RSI drops to 65 or lower, the dump ends!
...and without even looking at the RSI, count the white candles (= green) with my UT (1 week) leading to each of these 8 peaks ... rarely will you find such a climb with such a weak correction that the 'current 8800 > 8000! The only exception was the incredible 2013 bullrun ... which we know was due to the handling of Mtgox bots (Willy Bitcoin Trading Bot)
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