20 May 2025, 02:55

Chart Decoder Series: RSI – The Easiest Way to Spot Overbought and Oversold Markets

Welcome back to the Chart Decoder Series, where we break down the world of technical analysis into tools you’ll actually use. In our previous entries, we covered moving averages and MACD , great for identifying trends and momentum. Now let’s look at RSI , a tool many traders use to time their trades with better confidence. What is RSI? RSI stands for Relative Strength Index. It helps you see if a coin has been bought or sold too much recently and might be ready to reverse. It’s plotted as a line that moves between 0 and 100. Most traders use it with a 14-period setting. Depending on your chart’s timeframe, this could mean 14 days, 14 hours, or even 14 minutes. Unlike price-following indicators, RSI doesn’t just track where price is. It tells you how extreme recent buying or selling pressure has been . That way, you can figure out if the market’s about to flip before it actually does. How to Read It: RSI above 70 = Overbought → Market may be due for a correction RSI below 30 = Oversold → Market may be due for a bounce RSI between 40–60 = Neutral → No strong signal Example in Action: RSI (Purple Panel): Overbought Alert RSI is sitting above 70 , signalling classic overbought conditions . This suggests that Bitcoin’s recent bullish run may be losing steam or approaching a natural correction. What Traders Are Watching: RSI dropping back below 70 could mean a pullback is starting. If BTC remains strong, RSI might stay overbought. This is a behavior common in strong uptrends but also a risky zone for late buyers. For better accuracy, use RSI together with MACD and Moving Averages to make more informed decisions. MACD : Bullish, but Momentum Slowing? MACD Line (Blue): 4,142 Signal Line (Orange): 3,536 Histogram: Positive but starting to flatten, hinting that momentum is slowing down . The MACD remains bullish with the blue line comfortably above the orange, but keep an eye on that histogram. If those bars start to shrink, it’s often the first clue that bullish momentum is fading. Moving Averages : Is BTC Overextended? 50-Day EMA (Yellow Line): 92,570 200-Day SMA (Blue Line): 91,673 BTC is trading well above both these critical moving averages, which confirms the strength of the current uptrend. But this also raises a flag: Is the market overstretched? When price pulls too far away from these averages, a healthy correction often follows, bringing price back toward the 50 EMA , a level many traders view as dynamic support in a bull market. Final Takeaways: Should You Act Now or Wait? Current Trend: Strongly bullish but potentially overextended. RSI: In overbought territory, exercise caution. MACD: Still bullish, but showing early signs of slowing momentum. Strategy: If you’re already in profit, this is a great time to consider securing gains or tightening your stop-losses. If you’re waiting to enter, watch for a pullback toward the 50 EMA for a stronger, lower-risk entry point. Pro Tips for Using RSI Like a Pro RSI is simple, but using it well is where it really counts. Here’s how experienced traders make the best of RSI: Understand Market Context RSI works beautifully in sideways or ranging markets , where price bounces between support and resistance. But in strong trends (like a bull run), RSI can stay overbought or oversold for weeks. So don’t hit that sell button just because RSI hits 70. Look at the bigger picture first. Combine It with Other Indicators RSI works best when it’s part of the conversation. Try pairing it with: MACD to check if momentum agrees with what RSI is telling you. Moving Averages (like the 50 EMA) to see if price is stretched too far from key support levels. Watch for Divergence If price makes a new high , but RSI doesn’t? That’s called bearish divergence , momentum could be slipping. If price makes a new low , but RSI doesn’t? That’s bullish divergence , a bounce might be around the corner. Divergence doesn’t always play out immediately, but it’s one of those clues that serious traders don’t ignore RSI Is an Early Indicator, Not a Direct Call to Action Just because RSI is flashing overbought or oversold doesn’t mean you need to rush into action. Use it as an early warning, not as a reason to panic-buy or panic-sell. Play with Timeframes to Refine Your Strategy RSI readings change based on the timeframe you’re looking at. If the daily RSI shows overbought , but the 1-hour RSI is cooling off , this often means the market is in a short-term pullback within a larger uptrend. Smart traders use this to their advantage, waiting for the short-term RSI to reset before jumping back into the larger trend. This approach helps you avoid chasing tops and gives you better, lower-risk entry points. Always check multiple timeframes before making your move. See RSI in action Coming soon in Chart Decoder Series: Bollinger Bands – How to Trade Volatility Like a Pro Bitfinex. The Original Bitcoin Exchange. The post Chart Decoder Series: RSI – The Easiest Way to Spot Overbought and Oversold Markets appeared first on Bitfinex blog .

20 May 2025, 02:37

XRP Dominates Korean Trading with 13.67% of Upbit’s $20.48 Billion Volume

According to recent data from CoinGecko, reported on May 20, Upbit has witnessed a remarkable trading volume of $20.48 billion within a 24-hour period. Notably, the XRP/KRW trading pair has

20 May 2025, 02:32

Binance Seeks Arbitration for Class Action Lawsuit, Citing Waived Rights in Terms of Service

Binance faces significant legal scrutiny as it seeks arbitration for a class-action lawsuit, emphasizing its terms of service to shield itself from litigation. The exchange contends that its updated terms

20 May 2025, 02:26

Binance wants arbitration for all members of securities class suit

Crypto exchange Binance has asked a US federal judge to send all members of a class-action lawsuit alleging it sold securities to arbitration, arguing that the group waived their ability to form a class action under the company’s terms. The exchange said in a May 16 filing to a New York federal court that its terms of service, which it claimed the class group agreed to, has a clause that users agree to arbitrate all claims, along with a clause preventing users from launching class actions against the crypto exchange . “The Court should hold that Plaintiffs are required to arbitrate claims that accrued after Feb. 20, 2019, even if the Court adheres to its initial decision as to claims that accrued before then and that the class-action waiver in the 2019 Terms of Use is enforceable for all of Plaintiffs’ claims,” Binance said. Binance argues that its terms of service have a clause about users agreeing to arbitrate all claims. Source: PACER In March, Judge Andrew Carter denied Binance’s request to have all of the class action’s claims sent to arbitration for users who bought tokens on the exchange between April 1, 2017, and Feb. 20, 2019, and partially denied the motion for users who bought tokens after 2019 until a decision could be made to what extend the arbitration clause would apply. Binance said in its latest filings that it updated its terms in February 2019 to include the arbitration clause and argued that an earlier version of the terms of service included a clause that informed users that Binance could amend the terms as needed without any individual notice.. Binance case was previously dismissed Judge Carter had sided with Binance and dismissed the suit in March 2022. Binance had argued that it isn’t beholden to US securities laws because it doesn’t have a physical headquarters in the country. The US Court of Appeals for the Second Circuit overturned that decision in March 2024 , and the Supreme Court later declined to hear Binance's appeal in January of that year. Related: US judge transfers Binance lawsuit to Florida, citing first-to-file rule Binance’s legal entanglements in the US have escalated since mid-2023, when the Securities and Exchange Commission sued the company for selling unregistered securities, which was settled for $4.3 billion in November 2023. Binance was also slapped with a class action in Canada in April 2024 for allegedly violating securities laws after it announced its departure from the country in May 2023. Magazine: Arthur Hayes $1M Bitcoin tip, altcoins’ powerful rally’ looms: Hodler’s Digest, May 11 – 17

20 May 2025, 02:24

Bitcoin Price Breakout Looms: Charts Signal Run Toward New ATH

Bitcoin price started a fresh increase and cleared the $106,000 zone. BTC is now rising and might aim for another increase toward $110,000 Bitcoin started a fresh upward move from the $102,000 zone. The price is trading above $105,500 and the 100 hourly Simple moving average. There is a short-term bullish trend line forming with support at $105,800 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair could gain bullish momentum if it clears the $107,000 resistance. Bitcoin Price Starts Fresh Surge Bitcoin price started a fresh increase from the $102,000 support zone. BTC formed a base and was able to clear the $104,200 resistance zone. The bulls pushed the price above $105,000. There was a clear move above the 50% Fib retracement level of the downward move from the $107,042 swing high to the $102,100 low. It opened the doors for a move above the $106,000 resistance zone . The current price action is positive since the price settled above the 76.4% Fib retracement level of the downward move from the $107,042 swing high to the $102,100 low. There is also a short-term bullish trend line forming with support at $105,800 on the hourly chart of the BTC/USD pair. Bitcoin is now trading above $105,500 and the 100 hourly Simple moving average. On the upside, immediate resistance is near the $107,000 level. The first key resistance is near the $107,200 level. The next key resistance could be $107,500. A close above the $107,500 resistance might send the price further higher. In the stated case, the price could rise and test the $108,800 resistance level. Any more gains might send the price toward the $110,000 level and a new all-time high. Another Drop In BTC? If Bitcoin fails to rise above the $107,000 resistance zone, it could start another correction. Immediate support on the downside is near the $105,800 level. The first major support is near the $105,000 level. The next support is now near the $104,200 zone. Any more losses might send the price toward the $103,500 support in the near term. The main support sits at $102,500, below which BTC might gain bearish momentum. Technical indicators: Hourly MACD – The MACD is now gaining pace in the bullish zone. Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level. Major Support Levels – $104,200, followed by $103,500. Major Resistance Levels – $107,000 and $107,500.

20 May 2025, 01:38

US Senate moves forward with GENIUS stablecoin bill

The US Senate has voted to advance a key stablecoin-regulating bill after Democrat Senators blocked an attempt to move the bill forward earlier in May over concerns about President Donald Trump’s sprawling crypto empire. A key procedural vote on the Guiding and Establishing National Innovation for US Stablecoins Act, or GENIUS Act, passed in a 66-32 vote on May 20. Several Democrats changed their votes to pass the motion to invoke cloture, which will now set the bill up for debate on the Senate floor. Republican Senator Cynthia Lummis, one of the bill’s key backers, said on May 15 that she thinks it's a “fair target” to have the GENIUS Act passed by May 26 — Memorial Day in the US. Source: MartyParty The GENIUS Act was introduced on Feb. 4 by US Senator Bill Hagerty and seeks to regulate the nearly $250 billion stablecoin market — currently dominated by Tether ( USDT ) and Circle’s USDC ( USDC ). The bill requires stablecoins be fully backed, have regular security audits and approval from federal or state regulators. Only licensed entities can issue stablecoins, while algorithmic stablecoins are restricted. Several Democratic senators withdrew support for the bill on May 8, blocking a motion to move it forward, citing concerns over potential conflicts of interest involving Trump’s crypto ventures and anti-money laundering provisions. Related: Circle plans IPO but talks with Ripple, Coinbase could lead to sale: Report The bill was revised soon after to receive enough bipartisan support to proceed to a vote. Hagerty’s stablecoin bill builds on the discussion draft he submitted for former Representative Patrick McHenry’s Clarity for Payment Stablecoins Act in October. Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight