Bitcoin's Bullish Momentum May Be Over, According to Crypto Trader
CryptoNewsTerminal Staff06 Sep, 2024
Bitcoin's Bullish Momentum May Be Over, According to Crypto Trader
Cryptocurrency trader CJ (@CJ900X) with 840k followers recently analyzed Bitcoin's monthly Relative Strength Index (RSI) and concluded that the long-term bullish momentum may have faded. RSI is an indicator that measures the overbought and oversold levels of a market. A reading below 30 is considered oversold, while a reading above 70 is considered overbought. Historically, Bitcoin has tended to stay in the overbought zone (above 70) during a bull market. Falling below 70 can signal the end of a bull market, and the RSI typically doesn't recover until a bear market has played out and support is found around 40. In the current cycle, the monthly RSI briefly touched the overbought zone but now sits at 58.34. From a macro cycle perspective, this suggests that it may be time to lower expectations. However, CJ remains bullish for the fourth quarter of this year.
