How to Read the RSI Indicator: The Market's Lie Detector
What’s RSI All About?
The RSI is a momentum-based oscillator that captures the speed and change of price movements. It operates on a scale of 0 to 100, and if you know how to read it, it’s like having X-ray vision into the market’s moods. The best part? It’s super easy to use — slap it on any chart, any time frame and let it do its thing.
The Numbers
Above 70: Overbought alert! If the RSI shows a reading above 70, the trading instrument may have been partying a little too hard. Anywhere above
Let’s analyze Bitcoin’s current price action and what it could mean for the market.
The Double-Top Pattern: A Bearish Signal
A double top is a bearish reversal pattern that forms when the price fails to break resistance twice, creating two peaks at a similar level with a neckline (support) between them. If the neckline breaks, it could signal a deeper pullback.
How to Trade It?
✅ Short Entry – After the neckline breaks (a retest of the neckline
Possible Stages of Bitcoin top The big W spike could have been an important top for Bitcoin In times we have topping patterns we usually see the retracement levels hold 76/86 and then reject. When this happens we often seen wave 1 of the reversal in the obvious break. Wave 2 is the "Return to normal" bull trap (76 correction). When these are in place and waves 3 and 5 come, these tend to extend 2.61 of wave 2. Forecast for wave 5 low would be around 75K. #USUALSpotLaunch #MarketMajorComeback #BTCReclaims101K #MicroStrategyVsNasdaq #RLUSDApprovalBoostXRP $BTC
On the above 2 day chart price action has printed 100% gain since September. A number of reasons now exist for a bearish outlook in the near term. They include: 1. Price action failed support. 2. RSI and MFI failed support. 3. Strong bearish divergence with price action. 10 oscillators price negative divergence with price action at this time. 4. The 72k forecast is the 50% Fibonacci level. 5. What will happen to overbought alt tokens? Nothing good. Is it possible price action continues to print higher highs like most Youtube shills are calling for? Sure. Is it probable? No.$BTC #TokenReserve #CPIvsCrypto #LTC&XRPETFsNext? #BTCStateReserves #BTCvsInflation
Possible Stages of Bitcoin top The big W spike could have been an important top for Bitcoin In times we have topping patterns we usually see the retracement levels hold 76/86 and then reject. When this happens we often seen wave 1 of the reversal in the obvious break. Wave 2 is the "Return to normal" bull trap (76 correction). When these are in place and waves 3 and 5 come, these tend to extend 2.61 of wave 2. Forecast for wave 5 low would be around 75K. #USUALSpotLaunch #MarketMajorComeback #BTCReclaims101K #MicroStrategyVsNasdaq #RLUSDApprovalBoostXRP $BTC
Bitcoin- Sell! Daily price action seems to have rejected 100k level, as opposed to a strong close above for the bulls to continue. This is a strong indication that the bears are getting into the market. If daily PA closes below daily 50% fib level, then BTC is poised for a deep retracement to 50K. #RLUSDApprovalBoostXRP #BURNGMT #CPI4MonthsHigh #BTCRebounds100K #MicrosoftRejectsBTC $BTC
Earlier in August i thought also that high 40s would be possible but more i'm leaning towards maybe 50s now for the last shake off at the bottom of my 4TH wave but thats about The way i see it now is push higher 70500-73700.00 to complete orange count wave 3 After that deep ABC structure { 61-74% retrace} to finish the orange 4th wave. Then we should resume our uptrend again. Most expect 90-100s i see most likely 80-86K range as we finish our yellow 3th wave!... Good luck and let's see how it will work out for US#MemeCoinTrending #WhichMemeCoin? #SCRSpotTradingOnBinance #USRetailSalesBoost
In simple terms, the market is currently going up, but it is expected to reach a point (called the "resistance area") where it will face strong opposition. Once it hits this level, the upward movement will likely stop, and the price is expected to reverse direction and start going down.
1. Uptrend. The price is rising, and it is moving toward a specific level where it might face resistance.
2. Resistance Area. This is a price level where the market tends to struggle to go higher because many traders start selling here, believing the price is too high.
3. Reversal After hitting the resistance, the price is likely to stop rising and start falling. This is known as a reversal, which indicates a shift from the previous upward trend to a downward one.
Bitcoin is poised to make a significant move, targeting the $130K mark. Several key indicators point to this target: 1. Fibonacci Extension: The 0.618 Fibonacci extension, measured from wave 1 and wave 3 to wave 4, aligns with $130K. This makes it a crucial technical level. 2. Long-Term Trendline: Bitcoin's current bullish cycle is approaching a dynamic resistance level, further reinforcing $130K as a major target. 3. Elliott Wave Theory: We are currently in the final phase of a 5-wave impulse
Bitcoin recently completed a harmonic pattern near the 66,500 level. The initial price reaction was positive, increasing the likelihood of the beginning of a bearish movement. This harmonic pattern adds more weight to the bearish scenario we are considering. However, from a different perspective, BTO has been making significant upward and downward moves. When we refer to past movements, BTC is currently in a similar area. I am looking for profit-taking opportunities near strong zones where the price has previously reacted #MemeCoinTrending #TeslaTransferBTC #BTCSoarsTo68K #BinanceLabsInvestsLombard #BNBRisesTo600 $BTC
If we look at the chart, we can see how the price traded within the resistance area, but then reversed and fell to the support level, breaking through the 64,000 level. After this, the price started to rise, but failed, and for a short time tell below the support level, which was in line with the support area, and all the way down to the trend line. Next, BTC turned around and started to rise, and later recovered to the 57,500 level, broke through, and then continued to rise. But then the trendline was revised in line with support and then rebounded to resistance. The price sometimes trades around this level, then breaks through it, after which it even rises above the resistance area. But not long ago, Bitcoin reversed course and fell to the trend line, matching the 64,000 level, and recently fell below the trend line. Now, I expect BTCUSDT to retest the trend line and then continue down, so l set my target below 60K. The final target is expected to fall to 53K. $BTC #WeAreAllSatoshi #moonbix #BinanceLaunchpoolSCR #U.S.UnemploymentNewLow #HBODocumentarySatoshiRevealed
Bitcoin has been trading in a very tight range for the past week, showing little volatility and movement. This period of consolidation typically suggests that the market is indecisive, with neither bulls nor bears managing to take control. However, today there seems to be a bit more momentum, ano it looks like Bitcoin might be preparing to break out of this range, potentially breaching the upper boundary. If the price manages to break through this resistance, we could see an acceleration towards higher levels, with a potential target around 68k. #WeAreAllSatoshi #HBODocumentarySatoshiRevealed #U.S.UnemploymentNewLow #SECAppealRipple #BTCUptober $BTC $ETH
Bitcoin has started a downward correction, after which it began to gain bullish momentum. I expect to hover around the 63K support level and then start to have two possible upside positions: Immediate rebound Target :70k If the upside breaks above 67K, it could trigger a strong rally towards the 70K area, continuing the bullish momentum after the breakout. A pullback before a rally Target: Adjust to 57K, then rebound to 70K Trend: If Bitcoin fails to break through 67K, it may continue to fall ba
Bitcoin recently completed a harmonic pattern near the 66,500 level. The initial price reaction was positive, increasing the likelihood of the beginning of a bearish movement. This harmonic pattern adds more weight to the bearish scenario we are considering. However, from a different perspective, BTC has been making significant upward and downward moves. When we refer to past movements, BTC is currently in a similar area. I am looking for profit-taking opportunities near strong zones where the price has previously reacted, specifically around 59,800; 55700; and 52,800. Sell now: TP59800.04 ТР55710.29 ТР52807.42 SL66500 $BTC
Here are my views on $BTC which may or may not work, but l'm pessimistic It appears as though Bitcoin shall not break through 100k, but will instead front-run it at the 80k region. This is a deviation from my previous estimate, and is due to new data in the last 6 months. Looking at the economic situation, we have finally started getting rate-cuts. This was one of the criteria for confirming that we are about to enter a recession-induced bear market in the near future. High point rate-cuts by the Fed are a sign of policy panic, and reaction to a failing economy. The effects of these policy changes take many months to trickle down, therefore 2025 is looking like a losing position with reinforcement far away. Only when the rates finally get below 1%, do I expect to see liquidity injections into the market. $BTC #BinanceLaunchpoolHMSTR #EIGENonBinance #BTCPredictedNewATH #BTCReboundsAfterFOMC #CATIonBinance