Introduction and Market Analysis Today (June 17, 2025):
The Relative Strength Index (RSI) indicates the market's momentum state. The market is considered 'overbought' when the RSI exceeds 70, and 'oversold' when it falls below 30.
Today, the RSI for Bitcoin records a level of 63.53, representing moderate upward momentum away from the overbought zone.
BTC/USDT is currently trading at a price of $105,759 with a narrow daily range ($106,032–$104,627) and a trading volume of about $18.59 billion, reflecting balanced activity without sharp fluctuations.
Proposed Strategy for Entry Timing:
1. Preparation: Wait for the RSI to reach a level of 50–55 when the price rebounds upward, indicating the start of a new positive momentum.
2. Signal Confirmation: Once it exceeds 55 and the line tilts upwards with the opening of a daily candle above a technical resistance (e.g., $106,000), a buy can be initiated.
3. Stop Loss: Usually placed just below nearby support or slightly below the RSI 50 level, to reduce risks during momentum fluctuations.
4. Take Profit: The price targets psychological resistance areas like $110,000 or when the RSI reaches a level of 70–75 and a reversal signal appears on the chart.
5. Risk Management: Do not exceed trading size of 1–2% of capital for each trade, and always monitor trading volume fluctuations to avoid strained trades.
Why does this strategy work?
Based on scientific fundamentals of the RSI indicator to measure momentum and the speed of price changes.
Leverage live market data to accurately adjust entry and exit timing.
Provides clear risk management through stop loss and a defined profit target.
Have you tried this strategy? Share your thoughts and experiences in the comments!
