Relative strength index

Excuse me for signs of trends slow down here.

RSI 62.

We are above the 50 midline, but we aren't making any notable new highs thus far.

Look for that change as well for further bullishness.

But we've seemed to bounce back somewhat here.

So look for the bulls to push forward once more and recapture some of these other moving averages if you did have more of a upside bias here.

When we look at RSI, we are above the 50 midline, a similar triangular shape forming with our momentum indicator here.

So if we do crossover below that 50 midline, that would be more of a bearish type of move.

If we were to break below that and our trend line, our 21-day EMA in teal is around 983 for now.

RSI did take a bit of a pause here.

Our green upward sloping trend line was broken, but our short-term red downward sloping line also is broken too.

We pushed above that level.

Now we are back in the overbought area for now.

level of 70 typically is suggestive of strengthen in trending markets here but I do notice that we have a little bit of divergence here at the same time as we are making higher highs in terms of price RSI is not following suit here so not exactly what you want to see a bit of a mismatch between the pace of the gains in the actual price action here so now we can see that our volume profile gives us a node To watch kind of a spread out area between 975 to 1010.

Very little to the upside here to watch out for in terms of notable trading activities, perhaps around 1040 and 1070 or so.

But those are very small relative to the rest of what we see on our volume profile.

We also dropped below our 21 and 5-day exponential moving averages, which were roughly in confluence near the low 190s.

RSI also has taken a tumble here.

We are below the 50 midline with a downward sloping trajectory as well on our momentum indicator.

When we think about our volume profile study, we can see that the notable volume areas near our current activity, 172 to 188 is where much of the trading activity comes in.

So.

Relative strength, again, this is kind of a technical indicator, but when RSI is above 70, that suggests that whatever sector, stock, or market you're looking at tends to be overbought.

You start getting up towards 80 or above 80, markets are extremely overbought.

So once you get above 70, that's kind of the overbought.

Below 30, between 30 and 20, Stocks, markets, or sectors are extremely oversold.

Well, the tech RSI is sitting right close to 30.

We're just a little bit above 30 right now as of October 16th.

And so that's where we kind of met that oversold condition.

That's possible in a bull market and the market moves in phases.

So one of the things we've been monitoring is on the daily chart, we see the RSI is approaching the oversold zone.

So naturally, we can expect a bounce.

Now, it doesn't mean it has to go to the oversold zone, but we are seeing a bit of a bounce right now.

But I don't believe, you know, many bears are calling for $30,000, $40,000, all these things, right? Because they're shorting.

But the point is, is Bitcoin holding the support levels? Are there higher highs and higher lows? Yes, those things are in place.

And as mentioned, the RSI approaching the oversold zone, MACD shows good.

bears are losing momentum.

So.

Relative strength, again, this is kind of a technical indicator, but when RSI is above 70, that suggests that whatever sector, stock, or market you're looking at tends to be overbought.

You start getting up towards 80 or above 80, markets are extremely overbought.

So once you get above 70, that's kind of the overbought.

Below 30, between 30 and 20, Stocks, markets, or sectors are extremely oversold.

Well, the tech RSI is sitting right close to 30.

We're just a little bit above 30 right now as of October 16th.

And so that's where we kind of met that oversold condition.

Okay, like the moving average.

Or the RSI.

Yes.

Yes.

Indicators digitize that subjective human psychology into objective mathematical formulas.

Ah, I see.

Take the RSI, the relative strength index.

It's just a formula that measures the speed and change of price movements on a scale from zero to 100.