Bitcoin | Back To Basics Part 4: MACD & RSI (Oscillators)

1 сент.

My dear friends... We are going back to basics one last time and this time we will look at the MACD and RSI.

We are going to look at both indicators on the daily and weekly timeframe.
We are going to stay 100% out of the way, no opinions. We will read the indicators and translate them based on common knowledge.

Are you ready? Great!
Let's get started.

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➢ Bitcoin Basics | MACD

We start with the weekly timeframe. This is Bitcoin's weekly MACD:

The MACD is on the "bullish zone," which simply means that it is above zero. The fact that it is clearly moving lower while trending down is considered bearish. The "trending down" is the most important part.

The histogram is red which means that a bearish cross is already in place. The bearish cross happened 29-April 2024. When the MACD crosses the signal line with a downward bias.

Clear enough? Great!
Let's move on.

Bitcoin's daily MACD:

Here we can see the MACD on the "bearish zone," which simply means that it is below the zero line. The bearish cross here is also present; red histogram. It is also trending down, so the whole picture here is 100% bearish.

So far so good... Give me more!


➢ Bitcoin Basics | RSI

The same dynamic with the RSI. We start with the longer timeframe, weekly, and then move to the shorter timeframe, daily.

This is Bitcoin's weekly RSI:

This one is a little bit more interesting for learning purposes.

The reading is 48, which is bearish (below 50 is bearish).
It is trading below an important fib. level (bearish).
Trending down.

This being the weekly timeframe, these are strong bearish signals.
The weekly RSI is 100% bearish, currently. Things can change but this is how it is looking now. Pure TA. No opinion.

Bitcoin's daily RSI:

The daily RSI peaked January 2023 (not shown), so there is a long-term bearish divergence with this one.

The reading is 43, bearish. Trending down, bearish.
Not much to see here... The indicator simply confirms everything we can gather by looking at the candles and other indicators.


➢ Conclusion

The oscillators, MACD and RSI, are both bearish on the daily and weekly timeframes.

I hope you find this information useful.

Thank you for reading.

Namaste.