đ„ For the third time in the last 10 years, both the fast and slow RSI have crossed above 80% on the monthly timeframe (fast RSI is calculated over a 7-14 day period, slow RSI is calculated over a 6-12 month period).
The previous two times are marked on the chart as point 1 (around 2013) and point 2 (around 2016-2017), while this time it is point 3 (2024). After #Bitcoin peaked at 73k, the slow RSI fell to 77% for about 6 months, but has now recovered and crossed above 80%.
When both the fast and slow RSI cross above 80% at the same time, this is often seen as a sign of a strong price rally. This indicates that the market is in a strong uptrend, investor sentiment is very optimistic, but in the long term it also warns of the possibility of a correction.
This phenomenon is noteworthy because it reflects the convergence of bullish momentum in both the short and long term. However, investors need to be cautious because such high RSI levels can indicate that the market is in an overbought state. Historically, similar periods have often led to significant price increases, but have also been followed by subsequent corrections. âïž
