Don't tell me I didn't warn you on March 8th about this first break out! The fractal was there:
However, those who missed this week's huge spike on Bitcoin shouldn't worry. Based on the 1D RSI .
As seen on the chart since the price action crossed over the 200DMA (orange line) during the last bear market (that practically signaled the end of the bear cycle), every time the RSI got over 83.000, BTCUSD declined at least -30%! In today's cycle, depending on where BTC makes the top, this puts the pull back to at least 3800.
Traders/ investors should be alert as the current consolidation/ accumulation period will offer a few buy signals/ entries before the next bull market completely takes over and leaves the current lows behind.
Below is such an example where the 1W RSI and Mayer Multiple give the final Buy Signal within June and October:
P.S. Some evidence that the cycles bottom is in and we are on the early stages of the new bull cycle:
honestly, when I look at your chart, u seem to completely miss the point that within hitting RSI 83 for the first time and finally pulling back again, BTC gained between 35-50% in the timespan inbetween.
Any comment?
TradingShot
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@smoofologe, The point is to buy lower when that 30% pull back comes. Yes the price may rise more but what the RSI over 83 tells us is that a pull back WILL be coming (either now or in a few candles) and that we SHOULD take advantage of that. As I replies to some comments below, the signal precedes the price action and that is a good thing. It gives us time to adjust. My title/ suggestion is to wait and buy lower, not short.
smoofologe
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@TradingShot, i get that but if u take a closer look to your own chart, them u'll notice that even after the pullback u're talking about the price of BTC is still trading higher than before....
brooklynqueens
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foolish post. this site is silly with all the inexperienced line drawers. Amateurs.
TradingShot
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@brooklynqueens, I presented an argument. Your best way to prove your point is by making a counterargument with your own analysis. And I just saw an empty counterargument with provocative foul language. You are discrediting yourself. And also @TradingView is not a place where we prove who is amateur and who is the professional. It is a platform where we share and exchange ideas. And most of the times contradicting views are more beneficial. Damn I wonder why I got into the trouble of replying to you with my longest ever answer when I know you won't actually understand any of this...
I hope you are wrong but keep up the good work its appriciated
VisionCodeX
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@TradingShot, Good response. Keep doing what you are doing. Thanks for the analysis. Some of us are paying attention, even if we disagree.
BitcoinKenny
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lol RSI 83 = 30% drop? See you at $6000
TradingShot
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@KennyLm, Great counter argument!
Crypapi
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RSI = losing strategy trading, but yes retracement waiting, Note that RSI have passed 83 like 2-3 times before it drops 30% some times, those 2-3 times = alot of gains. we can still have antoher wave up, not saying we wont retrace tho.
Any comment?