RSI and other oscillators work best when the market cap is stable. since this is entirely not the case, the best estimate would be the RSI data transformed by a factor related to the rate of change of the market cap. this type of indicator, however, needs calibration.
that being said, the raw RSI data is hard to interpret because there has been a massive influx of money going on since we launched from <$20 last year. while capital naturally enters and exits a market with the movement of the price, the exponential gains in the price of bitcoin are due to the fact that the influx is large in proportion to the market cap.
this will invariably cause the RSI to be biased in the direction of the market, hence the "overbought" interpretation. it is difficult to tell how overbought we are exactly, right now.
--arepo
