One of the simplest price action indicators – the relative strength index or RSI – can safely predict bullish highs, analysts say
- “Two simple lines” which have been in operation for 10 years
- From “Extreme Fear” to “Extreme Greed” in Three Weeks: The Roller Coaster of “Schocktober”
An anonymous trader and analyst who goes by @ TechDev_52 alias on Twitter is sure that a single indicator can safely predict where the Bitcoin (BTC) price will find its macro-cycle peaks and troughs.
“Two simple lines” which have been in operation for 10 years
Today, the analyst took to Twitter to share his thoughts on the role of the Relative Strength Index (RSI) in predicting peaks and troughs in Bitcoin (BTC) prices.
Two single lines are enough to call each market up and down in #Bitcoinmore than 10 years of history.
I’ll do whatever I can to help us nail the next pair as close as possible.
And we have a hell of a community to help. pic.twitter.com/xTzCJ1rRiZ
– TechDev (@ TechDev_52) November 6, 2021
On its chart, the price dynamics of the flagship cryptocurrency is displayed on a logarithmic scale over a 14-day period. The two descending lines are added to the RSI chart; one in the “overbought zone”, one in the “oversold zone”.
According to the analyst’s views, when the RSI line touches the upper edge of the “channel”, the price of Bitcoin (BTC) peaks. Otherwise, touching the lower edge means the bottom of this or that cycle.
At the same time, on this chart, the price of Bitcoin (BTC) does not peak after the low: that is, in 2011, 2012 and 2014 we saw two consecutive peaks.
From “Extreme Fear” to “Extreme Greed” in Three Weeks: The Roller Coaster of “Schocktober”
As such, according to this model, the price of Bitcoin (BTC) seeks its peak in the waters of $ 140,000 to $ 160,000 at the start of the first quarter of 2022. At press time, the RSI line is below of 70, approaching the “moderately overbought” zone. .
Invented in 1978, the RSI is a momentum indicator that measures the magnitude of price changes in terms of the “power” displayed by bulls or bears.
Last October witnessed one of the most impressive changes in Bitcoin (BTC) sentiment. In three weeks, the Crypto Fear and Greed Index rose from 24 to 84 (“Extreme Greed”) and posted a seven-month high.