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The Monthly RSI
Last week, we spoke about how the RSI is approaching the orange-dashed mid-point on the Monthly RSI and how this rejection for the RSI could occur closer to the April 2024 just in time for a classic Pre-Halving retrace.
We're not too far from the orange-dashed mid-point of the RSI.
But what if the RSI could overextend beyond that orange-dashed trendline?
It's something worth being open to because even though there is a clear Lower High developing to form the orange-dashed mid-point for the RSI...
There is also a cluster of resistance developing a little higher (red box) where both 2016 and 2019 price rallies rejected from.
Generally, I'd treat the orange-dashed mid-point as a warning signal for a Local Top once the RSI reaches it and if overextension to the red boxed resistance occurs, that could be considered as a final alarm before a rejection occurs.
Important to note that this analysis could be useful for those who want to re-accumulate on a retrace closer to the Halving event.
Because after the Halving, the RSI will break beyond the mid-point comfortably and rally to the upper half of this overall Macro Wedge (red).