What is the difference between RSI overbought and oversold in the context of cryptocurrency trading?

1 answers

• Nov 29, 2021 · 3 years ago
  RSI overbought and oversold conditions are widely used in cryptocurrency trading. When the RSI is overbought, it indicates that the cryptocurrency may be overvalued and a price correction could be imminent. This is a signal for traders to be cautious and consider selling or shorting the cryptocurrency. On the other hand, when the RSI is oversold, it suggests that the cryptocurrency may be undervalued and a price rebound could occur. This is a signal for traders to be opportunistic and consider buying or longing the cryptocurrency. At BYDFi, we provide comprehensive technical analysis tools, including RSI indicators, to assist traders in making informed decisions in the cryptocurrency market.
  700350