Famous market analyst Ali Martinez recently shared a Bitcoin (BTC) strategy where traders can use RSI indicators to appropriately grasp market timing.Ali is short sellinganalysisIt is pointed out that in the past month, Bitcoin has consistently displayed Relative Strength Index (RSI) data on the 4-hour chart, which has been proven to be a reliable indicator of local top and bottom
Famous market analyst Ali Martinez recently shared a Bitcoin (BTC) strategy where traders can use RSI indicators to appropriately grasp market timing.
Ali is short sellinganalysisIt is pointed out that in the past month, Bitcoin has consistently displayed Relative Strength Index (RSI) data on the 4-hour chart, which has been proven to be a reliable indicator of local top and bottom.
As one of the most referenced technical indicators, RSI presents three different readings: highest point 75, lowest point 30, and neutral point 50.
If the RSI reading of an asset is 75, it means the asset is overbought, while an RSI reading of 30 indicates oversold. For each reading, the measure that should be taken is directly opposite to the indicator signal.
This means that when contemporary coins are overbought, selling becomes a natural strategy to maintain safety, while actively buying at 30 will keep buyers consistent.
Alibaba stated that when the RSI exceeds 74.21, traders can maintain a simple buying strategy for Bitcoin. On the contrary, he set the selling point at the point where the RSI fell below 30.35. Through this template, Alibaba suggests investors to be more patient, as the current RSI of Bitcoin is 51, close to the neutral range.
In actual trading settings, RSI is usually used together with another indicator that confirms the plotted trend. The Bollinger band is the most popular, as shown in the BTC/USD4H chart below, aligned with the neutral point of RSI. This means that patient appeals are currently correct.
Growth beyond technical indicators
The trends within the Bitcoin ecosystem are an important determinant of broader market momentum, and Bitcoin now exhibits many off chain fundamentals.
Due to the continued high sentiment of Bitcoin spot ETFs, many people are optimistic that if the US Securities and Exchange Commission (SEC) approves the product, it will mark a new era of adoption for this asset.
The bullish call before the upcoming halving of Bitcoin also strongly proves the fact that in the long run, Alibaba Chart's patient call may be rewarded.
Meanwhile, Bitcoin (BTC) has recently shown a very interesting price pattern, and the currency is currently moderately bullish. As of the time of publication, its price has risen by 0.46% to $27660.52.
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