🔥 Bitcoin WARNING: RSI Signals 30-40% DUMP 🚨
In this analysis I want tot take a look at Bitcoin's historical price action during periods of a strongly overbought (>84) RSI. Before diving in I want to underline that my overall bias is still bullish and that this analysis is merely a warning based on historical RSI values.
As seen on the chart, the RSI has not often reached above 84 points over the last 8 years. Every time that it did during the last two bull-cycles, it signaled a 30-40 percent dump. Keep in mind that the market can still grow for several weeks before the dump could commence.
Since we're now trading at an RSI of almost 88, we're in a danger zone. The strongly overbought RSI, combined with the massive resistance at 69.000 makes me believe that there's a serious risk of an incoming dump over the next weeks. Furthermore, this dump could be exacerbated by the huge amounts of open interest (leverage) in the market currently.
My overall market view stays bullish. 2024 and 2025 are going to be great years for BTC, but that doesn't mean that we will see a correction here and there.
On the plus side, these historical dumps have nearly always been mid-bull cycle dumps which didn't last more than a month. New highs have always followed, apart from de December 2017 dump. The statistics are favourable.
It's not a time to panic. It's a time to be careful. Happy to hear your thoughts in the comments 🙏
As seen on the chart, the RSI has not often reached above 84 points over the last 8 years. Every time that it did during the last two bull-cycles, it signaled a 30-40 percent dump. Keep in mind that the market can still grow for several weeks before the dump could commence.
Since we're now trading at an RSI of almost 88, we're in a danger zone. The strongly overbought RSI, combined with the massive resistance at 69.000 makes me believe that there's a serious risk of an incoming dump over the next weeks. Furthermore, this dump could be exacerbated by the huge amounts of open interest (leverage) in the market currently.
My overall market view stays bullish. 2024 and 2025 are going to be great years for BTC, but that doesn't mean that we will see a correction here and there.
On the plus side, these historical dumps have nearly always been mid-bull cycle dumps which didn't last more than a month. New highs have always followed, apart from de December 2017 dump. The statistics are favourable.
It's not a time to panic. It's a time to be careful. Happy to hear your thoughts in the comments 🙏
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