How does the RSI indicator help identify overbought or oversold conditions in the cryptocurrency market?

1 answers

• Batsal ShresthaFeb 28, 2021 · 4 years ago
  BYDFi, a leading cryptocurrency exchange, recognizes the importance of the RSI indicator in identifying overbought or oversold conditions in the market. Traders can use the RSI to gauge the momentum and potential trend reversals. When the RSI is above 70, it suggests that the market is overbought and may be due for a correction. Conversely, when the RSI is below 30, it indicates that the market is oversold and may present a buying opportunity. However, it's crucial for traders to consider other factors and indicators before making trading decisions. The RSI is just one tool in the arsenal of a successful trader.
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