$BTC Daily RSI is 25, entering oversold territory.
When I first started learning technical analysis, I bought the dip whenever I saw an oversold RSI. It took me a while to understand that an RSI below 30 is called oversold simply because the decline has been relatively large compared with the price movements during that period. In a one-way downtrend, it can stay low for a long time; being oversold is not, by itself, a reason to enter a trade.
Don’t let a single number throw off your original strategy, and certainly don’t gamble borrowed money on a reading.
When I first started learning technical analysis, I bought the dip whenever I saw an oversold RSI. It took me a while to understand that an RSI below 30 is called oversold simply because the decline has been relatively large compared with the price movements during that period. In a one-way downtrend, it can stay low for a long time; being oversold is not, by itself, a reason to enter a trade.
Don’t let a single number throw off your original strategy, and certainly don’t gamble borrowed money on a reading.