This morning I have received the umpteenth call of a friend of mine, whom I introduced to BITCOIN a few months ago and who, despite his initial disbelief about the world of cryptocurrencies and Blockchain, has now become a true fan of this matter, even starting to get deeper into this technology but, inevitably, he is also suffering from FOMO, as it has the feeling everybody experiment when starting in the middle of an extraordinary Bull market.
Actually, I keep receiving a few calls from this colleague every week, almost always asking the same thing, "should I buy ETH, should I buy ADA, SUSHI, LINK, THETA, GRT...?".The subject of the question changes depending on what crypto is pumping at each moment...
My answer is always very similar, "lean on the fundamentals and find a good price", "Do not risk everything", "Do not invest more than you are willing to lose" etc, etc, you know, the typical stuff trying to release a little bit his self pressure.
At the same time, I tried also to teach him somehow little by little in terms of Technical Analysis, Supports and Resistances, indicators, Candlestick charts, Stochastic, RSI and the like.
Today his question was slightly different, "RSI is massively OVERBOUGHT, Should I sell BTC now?" to which the answer on my part has been:
Well, it depends on the time frame in which you are observing it.
My friend replied,
both, it is overbought on the 4h chart and on the daily chart.
I nodded and said
yes, it's true they are both in OVERBOUGHT Condition ... it could be a great time to sell today if you have met your goals.
...to which he answered me,
is that it hasn't met yours already?
Shaking my head I replied,
"My targets on BTC are set in the monthly RSI and I am not on a hurry to sell my whole stake."
RSI 70 and 30 Condition limits works pretty well with lower Time Frames, however, in the Long Run, those limits may not be valid for BITCOIN or, at least, that is what happened in the two consecutives previous Bull Markets
*Disclaimer: This is just my personal point of view, please, do your own assessment and act consequently. Neither this post nor myself is responsible of any of your profit/losses obtained as a result of this information.
@toofasteddie