A quicky analysis of BTC's RSI dip down over the past few days...

[Pipdips]

Over the past few days Bitcoins RSI dipped down on multiple time windows and it went down pretty deep.  Dip dip dip!  Any thoughts on this dip?

Is this a healthy dip down?  Will there be a slow dip, a medium dip, or a fast bounce back?  Are you spotting any contradictory signals to this that I am missing here?

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[Lanatsa]

I'm not saying that the dip is over but now we are climbing again on 8500 price after that below 8k levels a few days back.
I'm not a technical analysis fanatic but it isn't bad to look up on RSI Divergence or even that Support and resistance matter.
Dip down reason? Neither of that Flash hashrate crash or on Bakkt issue.We cant be sure but as usual this market do reacts
with these sentiments.

[JeromeTash]

Here is a 4 hour chart


Which deep are you still worried about. If your are still waiting for the deep to get done. we are already out of it according to the 4-hour chart.

Late sunday and Monday will be critical days thou to determine what next.

[exstasie]

Over the past few days Bitcoins RSI dipped down on multiple time windows and it went down pretty deep.  Dip dip dip!  Any thoughts on this dip?

Is this a healthy dip down?  Will there be a slow dip, a medium dip, or a fast bounce back?  Are you spotting any contradictory signals to this that I am missing here?

You can't tell that much from RSI alone. People often think "oversold" conditions mean "buy signal" but that really only works under ranging conditions. In a strong downtrend, RSI can stay in the lower end of the range or oversold for quite a while.

"Healthy" in what way? You mean "is it a healthy correction to the bull market" or something like that? It's perfectly healthy as long as BTCUSD doesn't go too deep. Once it starts reaching the 0.786 or 0.886 retracement levels, we have to start considering the notion that we're actually in a bear market. We've only gone as far as the 0.5 so we're still in the range of normal.

Once it bottoms for good, there should be a fast recovery.

[GreatArkansas]

Here is a 4 hour chart
https://i.imgur.com/tfqdlk0.png
Which deep are you still worried about. If your are still waiting for the deep to get done. we are already out of it according to the 4-hour chart.

Too much deceiving on lower time frame.
But if you take a look also on weekly chart then the RSI on it.

Also extremely oversold. But I do expect more upside price movements on next week, hopefully.
This is really a huge red weekly candle for Bitcoin and it is very not good.

[masulum]

<snip>

Very different position with RSI indicator position. On RSI (default setting), its indicate as normal position. But on Stoch RSI currently indicate oversold position as you share. If I compare with Stoch RSI daily chart, BTC maybe recover to $8.600. But before it happens, I think BTC can be down more dip. Because Stoch RSI on 4H, 3H time frame indicate on overbought position. If BTC can't recover, BTC possible to down back to $7.900 position.

RSI 4H


RSI 1W

[th3nolo]

Over the past few days Bitcoins RSI dipped down on multiple time windows and it went down pretty deep.  Dip dip dip!  Any thoughts on this dip?

Is this a healthy dip down?  Will there be a slow dip, a medium dip, or a fast bounce back?  Are you spotting any contradictory signals to this that I am missing here?

You can't tell that much from RSI alone. People often think "oversold" conditions mean "buy signal" but that really only works under ranging conditions. In a strong downtrend, RSI can stay in the lower end of the range or oversold for quite a while.

"Healthy" in what way? You mean "is it a healthy correction to the bull market" or something like that? It's perfectly healthy as long as BTCUSD doesn't go too deep. Once it starts reaching the 0.786 or 0.886 retracement levels, we have to start considering the notion that we're actually in a bear market. We've only gone as far as the 0.5 so we're still in the range of normal.

Once it bottoms for good, there should be a fast recovery.

Pipdips made a good explanation of how the RSI works and the situation of the tendency long term, that something you don't see very often in this forum.

clearing that, I have chosen an example in the Daily chart of BTC on Bitmex to show you the DIP isn't a big deal "for now". As you can look, the RSI can stay in the lower end of the range for a while.



also, I don't expect any remaining movement this week. based on the average volume of XBT daily based on the Sk3w.co heatmap.




 

[adamlillian]

RSI has been around since Bakkt rekt. signals that speculators are trying to sell panic to avoid risk to them. That happened when Bitcoin's Bakkt failed and the hashrate plummeted. We can see Bitcoin's reign slowly weakening and it will soon be defeated by something better. Bitcoin is continually breaking its bottom and this decline will continue.

[Pipdips]

RSI has been around since Bakkt rekt. signals that speculators are trying to sell panic to avoid risk to them. That happened when Bitcoin's Bakkt failed and the hashrate plummeted. We can see Bitcoin's reign slowly weakening and it will soon be defeated by something better. Bitcoin is continually breaking its bottom and this decline will continue.

So the meaning of everything said here is: we are now, for sure, in a bear market...  

The direction of the RSI has been in contradiction with the price movement.

And I've got the Crypto Winter Blues...

[lobat999]

I must admit that I'm not fond of interpreting technical indicators such as RSI but I can't in any way disregard it usefulness! As a matter of fact, I think I'm getting more and more accustomed to BTC's volatility that I find it quite normal to see its price rise and fell below or above $2k but will eventually rebound in due time.

I guess this must be due to the fact that I have a long term mindset in treating Bitcoin as investment which  somehow spares me of having daily worries of BTC's price volatility. Now I see that all of these experiences gave me more confidence that BTC will eventually hit a new record high regardless of what is its price today!

[semobo]

Over the past few days Bitcoins RSI dipped down on multiple time windows and it went down pretty deep.  Dip dip dip!  Any thoughts on this dip?

Is this a healthy dip down?  Will there be a slow dip, a medium dip, or a fast bounce back?  Are you spotting any contradictory signals to this that I am missing here?

Prices went deep down and we already passed the time frame of quick bump and recover the same region where it was before that dump.And predictions says there are chances for further dump until end of this year.

[exstasie]

RSI has been around since Bakkt rekt. signals that speculators are trying to sell panic to avoid risk to them. That happened when Bitcoin's Bakkt failed and the hashrate plummeted. We can see Bitcoin's reign slowly weakening and it will soon be defeated by something better. Bitcoin is continually breaking its bottom and this decline will continue.

So the meaning of everything said here is: we are now, for sure, in a bear market...  

The direction of the RSI has been in contradiction with the price movement.

And I've got the Crypto Winter Blues...

We are definitely in a downtrend on the daily and weekly time frames. I still think we are in a broader bull market though. We still haven't reached the 0.618 retracement of this year's rally ($7,200s) which would constitute a typical pullback.

If we reach sub-$5,000 levels, it'll start looking like a bear market.

[Pipdips]

I think I'm getting more and more accustomed to BTC's volatility that I find it quite normal to see its price rise and fell below or above $2k but will eventually rebound in due time.

I am not a huge expert but I watch Bitcoin's price every day and multiple times per day.

With Bitcoin I have noticed two types of volatility.  1) this is the type of volatility that makes me think it will go back up soon enough, and 2) this is a more drastic volatility that is packed with emotion and a heavy pulling feeling, like the price is truly going downhill.

More optimistic types of people begin to emerge with their optimistic comments when 2 is happening.

[lobat999]

If we reach sub-$5,000 levels, it'll start looking like a bear market.

Now BTC is hovering at 8k levels which looks like its settling down and acting as its support level. With this, I'm interested to see if its going down to sub-5k levels then I would agree with you that the market has turned bearish!

I am not a huge expert but I watch Bitcoin's price every day and multiple times per day.

With Bitcoin I have noticed two types of volatility.  1) this is the type of volatility that makes me think it will go back up soon enough, and 2) this is a more drastic volatility that is packed with emotion and a heavy pulling feeling, like the price is truly going downhill.

More optimistic types of people begin to emerge with their optimistic comments when 2 is happening.

Good observation! If you follow the news more often, you will see Bitcoin whales coming out announcing their long term vision for  BTC explicitly stating that they are indeed bullish in it!! Though sometimes I see it as beneficial to the crypto industry acting as a damage control cushioning BTC's downward trend in these past few days.

[traderethereum]

After Bakkt launch, the price is down for slowly and now, the price still down.
I am afraid that it will trigger to go down for more, and if that happens, I hope that the traders will not be panic because that will be another adjustment of the price.
Maybe after the adjustment, we will see the price will slowly to start increasing, and I hope that it is the last time we see correction so then the price can fly high and reach the highest price.
But we could make a prediction without knowing the truth, and we should wait and be patient.
But we have a good time to repurchase bitcoin at a low price, and I am sure that many traders will use this chance to get as much bitcoin as they can.

[GreatArkansas]

RSI update for the Bitcoin:



This is the daily time frame of Bitcoin for the RSI.
As you can see, last time we fall on the oversold area of RSI was the year 2019, NOVEMBER - DECEMBER when the price dropped from $4,000 to around $3,000.
And now, from $11,000 almost now below $8,000. So, possible that we can see more downsides? But if we can see, probably max $ 7,000?

But this is good for Bitcoin if we will base it on the daily time frame of Bitcoin's RSI. Do bears have no more power to push this more downside?

[Pipdips]

Good observation! If you follow the news more often, you will see Bitcoin whales coming out announcing their long term vision for  BTC explicitly stating that they are indeed bullish in it!!

I have noticed that whales announce wildly optimistic bullish statements to the news and then like 2 hours later boooom the price drops dramatically.  Like clockwork, the price just sinks.

After Bakkt launch, the price is down for slowly and now, the price still down.

What exactly happened with the "Bakkt Launch".  I heard news about the launch, this launch, and that launch.  But now Bitcoin price sunk down and you hear nothing about Bakkt... that is a suspicious launch!

[btc-facebook]

If we make a trend line below the chart, now it has entered the turning point of bitcoin, there should be a reflection in the near future bitcoin, especially if we see the RSI has shown oversold and also the point at the RSI has returned to the point in November, this can be a serious sign, that bitcoin will experience training soon.

[Pipdips]

Over the past 2 days I have had my eyes glued to those Buy/Sell walls and they look really good.  Like Even Stephen!  The price outlook is starting to look more promising.  That dip down below the RSI has been causing a bumpy ride though....

[jmigdlc99]

Over the past few days Bitcoins RSI dipped down on multiple time windows and it went down pretty deep.  Dip dip dip!  Any thoughts on this dip?

Is this a healthy dip down?  Will there be a slow dip, a medium dip, or a fast bounce back?  Are you spotting any contradictory signals to this that I am missing here?

Bitcoin seems to be at a pretty strong support point right now. Can't exactly say if it will be a slow, medium, or fast dip back but one thing seems certain based on all the price opinions/analysis of late, bitcoin is still BULLISH.

I wouldn't be surprised if value rises sharply soon because of the nearing "halvening." Just need to hold a little longer.