Bitcoin RSI Reaches Full Power, Highest Overbought Conditions Since June 2019

Tony "The Bull" Severino

Last Updated: May 6, 2020 4:00 pm

3 mins read

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The most recent push in Bitcoin price by bulls has resulted in the Relative Strength Index, or RSI, reaching full power.

The commonly used trend-strength measuring tool hasn’t hit such overbought conditions since the June 2019 top. Does this mean that the first-ever cryptocurrency is topping out again, or is this just the start of a more powerful rally?

Daily Bitcoin RSI Stays Overbought For Longest Stretch Since June 2019 Top

Bitcoin price has exploded from lows set on Black Thursday last month, to as high as $9,400 at the time of this writing. And with Bitcoin’s halving just one week away, the trend momentum may only increase from here.

The most recent price action and rally across the crypto space, has caused Bitcoin’s Relative Strength Index to read the highest levels since the June 2019 top.

The RSI is used to measure the strength of an asset’s trend. Any exceptionally strong deviations to one extreme on the RSI, typically suggests an asset has reached overbought or oversold conditions.

Bitcoin’s RSI is now signaling the longest stretch of overbought conditions since June 2019, even beating out the recent February 2020 top.

That top sent Bitcoin plummeting to under $4,000.

Does the RSI reaching “full power” according to one crypto analyst suggest that the rally is coming to an end, or could it also mean that it is just getting started?

Relative Strength Index May Be Indicating A New Crypto Bull Market Is Here

The RSI reaching such levels on daily timeframes also can act as a trigger for sustained bullish price action.

Zooming out a bit further beyond the June 2019 top, the RSI shows three distinct peaks that held above overbought conditions for extended periods.

Each one of these peaks didn’t result in a reversal. In this case, the RSI is showing that the trend is so strong, the upside is likely to continue.

The daily RSI can stay overextended for sustained periods during bull markets. The indicator also provides unique reading across different timeframes.

For example, when switching to weekly timeframes, the RSI is nowhere near overbought conditions, signaling that the current rally has plenty of room on the weekly to grow.

Furthermore, zooming out even further, shows that the RSI is more commonly overbought during bull markets in Bitcoin. Even more interesting, each bullish phase appears to be triggered by the each Bitcoin halving.

With Bitcoin’s next halving just one week away, and the RSI reaching full power, it could be full steam ahead for Bitcoin’s next bull market.

Featured image from Pixabay, Charts from TradingView

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.