When to buy bitcoin: A tip for the casual investor
For experienced traders, this will be obvious. But for the casual investor, this is the simplest way to determine when to buy bitcoin. In fact, I would say it's as close to a "sure thing" as you will find in the crypto market.
You can see that the last two cycle bottoms occurred when weekly RSI dipped below 30. While there's no guarantee that RSI will dip to 30 any time soon, if it does, you can bet there's a very high probability that price is at or near the bottom.
However, I still think there is a reasonable chance that this bull cycle isn't over:
So I'll be averaging in on every dip from here to the bottom.
You can see that the last two cycle bottoms occurred when weekly RSI dipped below 30. While there's no guarantee that RSI will dip to 30 any time soon, if it does, you can bet there's a very high probability that price is at or near the bottom.
However, I still think there is a reasonable chance that this bull cycle isn't over:
For most assets, RSI > 70 suggests its overbought, and RSI < 30 means oversold. You'll see many charts where RSI goes well below 30 before price bottoms out. This is just a general rule of thumb though, and is not necessarily the case for bitcoin. For me, bitcoin isn't overbought until RSI > 80, and is oversold anywhere below 40, so I would argue that bitcoin is treading in oversold territory as we speak: