If you need more information about rsi and how is it calculated you can find it, for example, here rsi. On the graph below, x axis is showing months and y rsi value.
3- the rsi is best applied in its most suitable trading environment. Like a moving average, the rsi is best applied in its most suitable trading environment. For moving averages these are trends, while in the case of the rsi, it is often best used in ranges where a drop-off in momentum at the extremes is one of the telltale signs of expected reversals.
These are the most favorable probabilities when deciding to get in and out.
Now we can see how, in the case of bitcoin, we can capture long-term cycles with it. In the case of bitcoin, the trend of bull cycles is very recognizable. On the graph, the vertical green lines indicate the buy, the vertical dirty lines, and the sell points.
4 of the days, bitcoins daily rsi was above 70, which is generally perceived as overbought. Considering oversold range, bitcoins daily rsi was on just 4.
description relative strength is computed using the formula. Rsi 100 (1001rs) rs (relative strength) average of x days up closes average of x days down closes. Wilder used the 14 day rsi, which is still the most commonly used rsi. However, an analyst is free to decide the number of days for computing the same.
The indicator is applicable to any type of security that is traded on a market which reflects changes in value by assigning securities a price. This means that the rsi can be used to track the momentum of bitcoin and other cryptocurrencies.
The rsi indicator is a momentum oscillator the signal primarily oscillates between 70 (over-bought) and 30 (over-sold). Bitcoin (rsi 50) is currently neither in the over-bought region not in the over-sold territory. However, the long term rsi history of bitcoin suggests that the bottoming is still a possibility.
At its base level, the rsi formula is rsi 100 100 (1 (average of upward price change average of downward price change)) this formula ensures values range between 0 and 100. If the value drops below 30, the conditions are considered oversold and a buy signal is generated.
Bitcoins rsi following its jump from 3,858 in march to above 41,000 in january has surged to 89. Ethereum trades near its yearly high as its rsi signals topping out.