[BTC 1 W] Not as bullish as you think we are, Deep RSI analyis
I have developed a system of previous pressure points on BTC/crypto currency that I use for trading
36/46/56/65 RSI are my markers. works best on 30mins charts and higher. The higher the more accurate in my experience.
Let me explain shortly these indicators and what they mean to better understand my point of view.
Lets assume we are starting from 0 RSI and we move up to 36 RSI and reject, this would mean the current Strength of the market is weak and very bearish
You treat 36/46/56/65 and resistance/support lines for whether an asset is bearish or bullish. Go throw these onto one of your graphs, you will see major correlation in bounce ups or bounce downs
Example: coming down from 90 RSI to 65 RSI would indicate the the market is bullish(for whichever time frame you chose)
46 to 56 RSI is what I consider a "coinflip zone" where anything could happen, and other analysis is needed to determine the direction. but there is 1 rule to 46 RSI
46 RSI rule is that if the RSI is coming down from 70 and above and 46 RSI breaks, a very high % of the time the RSI will break below 30(as it did here, we were barely hanging onto 46 RSI back when BTC was $6000.
--------------------------------------------
Anyway back to $BTC
We can see the weekly chart that the obvious buy zone below 30 RSI has brought us to about 37 RSI as of writing this.
My rule allows for +1/-1 RSI buffer room so just because its above it a little doesn't mean it going to above.
If we do not break 36 RSI on the weekly chart(to atleast 38/39), we are 100% going to 3560 for sure, and if that breaks, 100% to 2950 and below.
You can view the tough time we had between 0 and 36 RSI (on the 4hr chart) back when we tanked from 6k > 3k.
36/46/56/65 RSI are my markers. works best on 30mins charts and higher. The higher the more accurate in my experience.
Let me explain shortly these indicators and what they mean to better understand my point of view.
Lets assume we are starting from 0 RSI and we move up to 36 RSI and reject, this would mean the current Strength of the market is weak and very bearish
You treat 36/46/56/65 and resistance/support lines for whether an asset is bearish or bullish. Go throw these onto one of your graphs, you will see major correlation in bounce ups or bounce downs
Example: coming down from 90 RSI to 65 RSI would indicate the the market is bullish(for whichever time frame you chose)
46 to 56 RSI is what I consider a "coinflip zone" where anything could happen, and other analysis is needed to determine the direction. but there is 1 rule to 46 RSI
46 RSI rule is that if the RSI is coming down from 70 and above and 46 RSI breaks, a very high % of the time the RSI will break below 30(as it did here, we were barely hanging onto 46 RSI back when BTC was $6000.
--------------------------------------------
Anyway back to $BTC
We can see the weekly chart that the obvious buy zone below 30 RSI has brought us to about 37 RSI as of writing this.
My rule allows for +1/-1 RSI buffer room so just because its above it a little doesn't mean it going to above.
If we do not break 36 RSI on the weekly chart(to atleast 38/39), we are 100% going to 3560 for sure, and if that breaks, 100% to 2950 and below.
You can view the tough time we had between 0 and 36 RSI (on the 4hr chart) back when we tanked from 6k > 3k.
Comment:
were getting VERY CLOSE to 3565 on CB
If we break that for too long
I worry what could happen
If we break that for too long
I worry what could happen
It does not look good right now, and potential the 36 RSI marker is telling us the market is not ready to return yet.
While we were bullish on RSI 1/2/3/4 hour since December 17th,
The weekly in a whole looks like we are still quite in bearish mentality