Aggregate 4th Cycle RSIs

Chart Explanation

This chart studies the Relative Strength Index (RSI) of coins during the 4th cycle. We measured the 1-day RSI on the exact date when each coin reached its price top and bottom. The RSI is a popular indicator that helps us understand if an asset is overvalued or undervalued. You buy when the RSI is low, and sell when the RSI is high. The higher the RSI the more overvalued the asset is, and lower means more undervalued. In this chart, the larger number on each bar is the RSI when the coin price topped, and the smaller number is when the price bottomed. Click on a bar to load the chart from which each RSI calculation was derived.

Aggregate 4th Cycle RSIs

Thoughts on these RSIs

It's interesting to see that the lowest RSI in a cycle does not always correspond to the price bottom of an asset during that cycle. This means that a low RSI can see the price continue to fall, even while the RSI can go slightly up (that is called divergence). It's also interesting to note that the RSI was always below 45 during the price bottom of these coins. The average RSI at the bottom was very close to 30, at 28.62; coins tend to bottom around that area. The RSI is an excellent indicator, but we cannot use it by itself. We need to combine the RSI with other signals in order to get an accurate read on the market.