Though the RSI is determined by price action, we often see the RSI move in a direction before price.
During the 2019 run up, both the price and RSI formed an ascending channel.
1. The RSI broke down first (white line)
2. Retested the channel (yellow line)
3. Continued its decline (red line). At this point, the price followed by falling out of the channel.
Since our latest run up after the Corona panic dump, a similar pattern has been developing.
1. Both the RSI and the price ascended in a channel, then the RSI broke down (white line).
2. The RSI retested the channel (yellow line).
3. The price has yet to follow the RSI with a channel breakdown. But when it does, prepare yourself.
We could very well see a 3k-4k bitcoin again.
During the 2019 run up, both the price and RSI formed an ascending channel.
1. The RSI broke down first (white line)
2. Retested the channel (yellow line)
3. Continued its decline (red line). At this point, the price followed by falling out of the channel.
Since our latest run up after the Corona panic dump, a similar pattern has been developing.
1. Both the RSI and the price ascended in a channel, then the RSI broke down (white line).
2. The RSI retested the channel (yellow line).
3. The price has yet to follow the RSI with a channel breakdown. But when it does, prepare yourself.
We could very well see a 3k-4k bitcoin again.
