The RSI, especially on the larger timeframes, seems to be one of the most reliable indicators out there.
On every big candle we have these days, the RSI gains & drops massivly in strength.
What's different now from before, is, that the RSI also loses a lot in strength during a dump. If you compare it to one of the earlier dumps this year (marked with the yellow elipse), you can see that it behaved differently during that time. The selloff was huge in comparison to the drop in strength.
Therefore, I assume that we're slowly reaching equilibrium and entering the accumulation cycle.
When it comes to trading, that means:
- Shorter targets, don't expect massive moves to either side, unless there's a cataclysmic event
- Think about slowly collecting your favorite coins and tokens for the next market cycle
- Now more than ever: Sell at resistance and buy at support. Have a (mental/hard) stop right above & below it. These areas yield the best risk/reward ratio
Keep in mind:
If we get some sort of black swan event, capitulation can still happen.
On the flipside, bullish news like an ETF approval would most likely start off the next bull cycle.
On every big candle we have these days, the RSI gains & drops massivly in strength.
What's different now from before, is, that the RSI also loses a lot in strength during a dump. If you compare it to one of the earlier dumps this year (marked with the yellow elipse), you can see that it behaved differently during that time. The selloff was huge in comparison to the drop in strength.
Therefore, I assume that we're slowly reaching equilibrium and entering the accumulation cycle.
When it comes to trading, that means:
- Shorter targets, don't expect massive moves to either side, unless there's a cataclysmic event
- Think about slowly collecting your favorite coins and tokens for the next market cycle
- Now more than ever: Sell at resistance and buy at support. Have a (mental/hard) stop right above & below it. These areas yield the best risk/reward ratio
Keep in mind:
If we get some sort of black swan event, capitulation can still happen.
On the flipside, bullish news like an ETF approval would most likely start off the next bull cycle.