Bitcoin RSI signals it is time to buy BTC now

The mantra “buy low and sell high” is what can make cryptocurrency traders profitable. Moreover, the ability to identify local lows and highs is one of the most valuable skills for anyone speculating in the crypto market, and some technical analysis indicators can assist speculators in that task.

Although investors should not rely upon a single indicator to make financial decisions, the Relative Strength Index (RSI) is usually seen as a relevant signal to consider while trying to spot local highs and local lows. It can also be used to identify trend continuation and trend reversals.

Notably, the crypto trading expert Ali Martinez spotted, on October 11, what he believes is a precise pattern at the Bitcoin (BTC) 4-hour candlestick chart using the RSI to identify these local highs and lows.

“In the past month, the 4-hour chart RSI has been the real MVP for spotting those local highs and lows. The strategy is simple: Buy BTC when RSI dips below 30.35. Sell BTC when RSI exceeds 74.21.”

— Ali Martinez (@ali_charts)

Interestingly, the Relative Strength Index recently crossed 30.35 points, immediately bouncing back up after BTC was briefly traded at sub $27,000, “signaling a potential buy-the-dip opportunity,” according to Martinez.

Will Bitcoin go up now?

Additionally to the RSI and Ali’s analysis, experienced crypto traders have also noticed other relevant buy signals for Bitcoin in the current price zone.

The pseudonymous X account CryptoNuevo had already warned traders on October 10 about a potential dip to the $26,900-$27,200 range, due to a massive accumulation of liquidity in these prices, before a potential new upside.

$BTC follow up update:

Price inmediately headed towards low $27s, the main liquidity zone for the week.

However, they didn’t hit the major liq. levels.

I’d like to see $27.2k and $26.9k getting hit before any major move to the upside. Otherwise, they’ll have a reason to drop. pic.twitter.com/DEtQpnVFBf

— CrypNuevo 🔨 (@CrypNuevo) October 10, 2023

However, investors are waiting for tomorrow’s U.S. CPI data for September, which could impact all markets, including Bitcoin. On that, the year-over-year (YoY) CPI is expected to be at 3.6%, with a 10 basis points (bps) reduction from August, while the YoY Core CPI is expected to be at 4.1%, with a 20bps reduction from last month.

In a vacuum, a lower-than-expected CPI could trigger the markets into an uptrend, while a higher-than-expected CPI could make the markets go even lower. Results within the expected values are most likely already priced in.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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