RSI Bitcoin Indicator Overbought and Oversold Levels

RSI cryptocurrency indicator values of above 70 are considered to be overbought; bitcoin traders consider points above the 70 level as market tops and good points for taking profits.

RSI cryptocurrency indicator values of below 30 are considered to be oversold; bitcoin traders consider points below the 30 level as market bottoms and good points for taking profits.

These overbought and oversold bitcoin trading levels should be confirmed by RSI center line crossovers cryptocurrency trading signals. If these regions give a market top or bottom, this cryptocurrency signal should be confirmed with RSI center line crossover crypto signal. This is because these overbought and oversold levels are prone to giving whipsaws in the btcusd trading market.

In the cryptocurrency trading example illustrated below, when the RSI hit 70, it showed that the bitcoin trading was overbought, and this could be considered a trading signal that the bitcoin trend could reverse.

The cryptocurrency chart then reversed the bitcoin trend after a short while and started to move downwards, until it got to the oversold levels. This was considered a cryptocurrency market bottom after which the cryptocurrency chart started to move upwards again.

Overbought and Oversold Levels - RSI Bitcoin Trading Strategies

Over Extended Overbought and Oversold Levels

When the btcusd trading market is trending strongly upwards or downwards the RSI cryptocurrency indicator will stay at these overbought and oversold levels for a long time. When this happens these overbought and oversold regions cannot be used as cryptocurrency market tops and cryptocurrency market bottoms because the RSI cryptocurrency indicator will stay at these levels for an extended period of time. This is the reason why we say that the overbought and oversold regions are prone to bitcoin trading whipsaws and it is best to confirm these cryptocurrency signals using RSI center-line crossover strategy.

Over Extended Overbought and Oversold Levels - RSI Bitcoin Indicator Strategy