Over the past few days Bitcoins RSI dipped down on multiple time windows and it went down pretty deep. Dip dip dip! Any thoughts on this dip?
Is this a healthy dip down? Will there be a slow dip, a medium dip, or a fast bounce back? Are you spotting any contradictory signals to this that I am missing here?
You can't tell that much from RSI alone. People often think "oversold" conditions mean "buy signal" but that really only works under ranging conditions. In a strong downtrend, RSI can stay in the lower end of the range or oversold for quite a while.
"Healthy" in what way? You mean "is it a healthy correction to the bull market" or something like that? It's perfectly healthy as long as BTCUSD doesn't go too deep. Once it starts reaching the 0.786 or 0.886 retracement levels, we have to start considering the notion that we're actually in a bear market. We've only gone as far as the 0.5 so we're still in the range of normal.
Once it bottoms for good, there should be a fast recovery.
