I've spend some time and improved this analysis, changed upper band for 90 and lower band for 50 scores. Moreover, other settings were modified: length was changed for 16 days while source is open. The visible orange lines indicate first peaks in Bitcoin price/bubble however, red lines indicate final exit point of second RSI bubble. Lower RSI value is set up to indicate entry position, moreover, blue vertical lines were used to confirm the accuracy of that strategy.
Just to simplify the analysis, when RSI is: - above 90 at monthly chart = STRONG SELL - below 50 at monthly chart = STRONG BUY
As you can clearly see, the 2020/21 is a bull market for Bitcoin, however, we didn't even touched the 90 day RSI for a primary signal of a first bubble in Bitcoin!
Keep HODLing and don't panic!!
Regards Simon_says
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BTC: FTX Reserve The amount of BTC held in FTX wallets.
Nice work, thank you!
I guess when you say "length was changed for 16 days" (in the beginning of the description) you mean 16 months (or candles), right?
badelinemadeline
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Hi Simon_says--thank you for your analysis. I am fairly new and have a couple questions if you'd be willing to discuss.
(1) Why is a monthly RSI above 90 a strong selling indication and a monthly RSI below 50 a strong buying indication? Is this only for BTC? I read an article that said that an RSI above 70 indicates an overbought security.
(2) Is your chart showing that BTC is approaching a mid-80's RSI, and would this be cause for concern that a bubble is approaching? And if so, what--besides a market crash--could cause the RSI to drop to more reasonable levels?
landiesel
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thanks :) a lot :)
ForecastCity_World
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Beautiful setup
Simon_says
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@ForecastCity_World, Thanks! Higher accuracy can be achieved by switching from monthly to weekly timeline.