- The Relative Strength Index (RSI) is often viewed as a relevant signal when trying to identify local highs and lows.
- On October 11th, Ali Martinez discovered a specific pattern on Bitcoin’s 4-hour candle chart that he thought helped determine local highs and lows, using the RSI.
- Independently, a lower than expected CPI could trigger markets to the upside, while a higher than expected CPI could cause markets to fall further.
Relative Strength Index (RSI) in Bitcoin may be giving a buy signal: The famous analyst shared his thoughts about the current situation.
Bitcoin’s RSI Indicator: What Does It Suggest?
The principle of “buy low, sell high” is something that can make crypto traders profitable. Furthermore, the ability to identify local highs and lows is one of the most valuable skills for anyone speculating in the crypto market, and some technical analysis indicators can assist speculators in this task.
The Relative Strength Index (RSI) is often seen as a relevant signal while trying to identify local highs and lows as it attempts to determine local extremes. Additionally, it can also be used to determine trend continuation and reversal.
In particular, crypto trading expert Ali Martinez discovered a specific pattern on Bitcoin’s 4-hour candle chart on October 11th that he thought helped identify local highs and lows.
“Over the last month, the 4-hour RSI has been the real MVP in finding local highs and lows. The strategy is simple: Buy BTC when RSI falls below 30.35. Sell BTC when RSI exceeds 74.21.”
Interestingly, the Relative Strength Index recently exceeded the 30.35 mark and Bitcoin momentarily traded below $27,000 and then rebounded, indicating a “buy the dip opportunity,” according to Martínez.
Now, will Bitcoin rise?
Apart from RSI and Ali’s analysis, experienced crypto traders have also noticed other relevant buy signals for Bitcoin within the current price range. An account with the pseudonym CryptoNuevo had drawn attention to a range of $26,900 – $27,200 due to significant liquidity accumulation as a potential area for price fluctuations before a possible new upward movement on October 10th.
However, investors are waiting for tomorrow’s U.S. September CPI data, which can influence all markets, including Bitcoin. The year-over-year CPI is expected to be 3.6%, as expected, with a 10-basis-point decrease from August. The year-over-year Core CPI is expected to be 4.1%, as expected, with a 20-basis-point decrease from the previous month.
Independently, lower-than-expected CPI can trigger upward movement in the markets, while higher-than-expected CPI can lead to further declines. It should be noted that results within the expected values are likely already priced in.
