Bitcoin‘s Relative Strength Index is about to cross 50 (overbought) after making a record low this bear market. This pattern has always been an indicator for a reversal.

If you think about TA indicators in Crypto or any financial market, the Relative Strength Index (RSI) will be very high up on that list as it is one of the most popular ones and one of the most used ones. In comparison to other, maybe speculative and newer indicators, this one has a very successful history if used right. Also in Crypto the RSI has been key to confirm several trends over the years and now again.

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Firstly, what is the RSI? The RSI is a so-called oscillator as it gets measured from 0-100, 0 being oversold and 100 overbought. It basically measures the strength and speed of each price move, calculated through the average price changes in both directions. Most here have the misconception that being “oversold“ means that we are about to reverse and vice versa. This is not true, being oversold means that the downtrend is much more likely to just continue and vice versa.

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TradingView Chart edited from BTC_Archive on Twitter

Now here we have the monthly chart of this oscillator with BTC. Here we can see that during this bear market we had made fresh all time lows on this indicator during black swan events such as the FTX implosion. And now after this rally we are about to cross the crucial 50 mark on this indicator, that mark is especially crucial as this is where BTC becomes “overbough“, meaning that we enter a bullish trend and thus have a trend-reversal.

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The RSI is one of the most renowned indicators out there in the world of TA and has a very high rate of giving the right confirmations for a reversal. This it could happen too if we just continue our positive trend from January in February too.