Today, all eyes on Bitcoin were focused on the FED's interest rate announcement. The FED kept interest rates constant in line with expectations.
At this point, a bullish comment for BTC came from Glassnode co-founder Yann Allemann.
Stating that the relative strength index (RSI), which is a momentum indicator used to measure the speed and change of price movements in Bitcoin, gives an upward signal, Allemann stated that this shows that BTC may rise even higher soon.
“Momentum is strong in Bitcoin!
This shows that BTC may rise even higher soon.
Historically, an RSI above 70 indicates that momentum in Bitcoin is strong and BTC is rising strongly.
“Now we are in a situation where the RSI is above 70 again.”
The current" = Momentum is strong!💪
Indicates, that BTC could move higher soon.
In historical context: RSI > 70 —> Momentum is strong —> BTC rises strongly.
We are now again in a situation with RSI >70@HenrikZeberg #bitcoin #cryptocurrency #crypto #blockchain #forex #btc… pic.twitter.com/w3RSwGbEuQ
— 𝗡𝗲𝗴𝗲𝗻𝘁𝗿𝗼𝗽𝗶𝗰 (@Negentropic_) November 1, 2023
Accordingly, the RSI rose above 70, a threshold indicating the FOMO (fear of missing out) phase of the mid-2019 and late 2020 bull rallies.
A level above 70 generally represents an overbought situation and a signal of an impending downtrend. However, on BTC's long-term outlook, an RSI above 70 indicates that bullish momentum is strong and the asset may continue to rise in the coming weeks, similar to what happened in 2019 and 2020.
*This is not investment advice.