RSI Bitcoin Indicator Overbought & Oversold Levels

RSI technical indicator values of above 70 are considered to be over bought: bitcoin traders consider points above the 70 level as market tops and good points for taking profits.

RSI technical indicator values of below 30 are considered to be over sold: 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 signal. This is because these overbought and over-sold levels are prone to giving whipsaws in the btcusd market.

In the cryptocurrency example illustrated below, when the RSI hit 70, it showed that the bitcoin trading was overbought, & 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 downward, until it got to the oversold levels. This was considered a market bottom after which the cryptocurrency chart started to move upward again.

RSI BTCUSD Overbought and BTCUSD Oversold Levels BTCUSD Strategies

Overbought & Oversold Levels - RSI Bitcoin Strategies

Over Extended Overbought and Over-sold Levels

When the btcusd trading market is trending strongly upwards or downwards the RSI cryptocurrency indicator will stay at these over-bought and over-sold 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 over-sold 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

Over Extended Overbought & Oversold Levels - RSI Bitcoin Indicator Strategy

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RSI Bitcoin Indicator Overbought & Oversold Levels

Over Extended Overbought and Over-sold Levels