One of the most effective ways to gauge momentum in crypto is by tracking the Relative Strength Index (RSI). This indicator doesn’t just reflect today’s price action—it reveals the underlying sentiment shifts over time. According to the latest CoinMarketCap RSI Dashboard, the crypto market’s average RSI surged from 36.18 last week to 63.07 today, signaling a dramatic swing from near-oversold to firmly overbought conditions.
So, what do these rising RSI values mean for Bitcoin, Ethereum, and the broader crypto market?
A Quick Refresher: What RSI Measures
The Relative Strength Index is a momentum oscillator that ranges between 0 and 100:
- Above 70 → Overbought (risk of pullback)
- Below 30 → Oversold (potential rebound)
- 30–70 → Neutral (steady trading momentum)
By comparing historical RSI values, traders can see when the market shifts from bearish caution to bullish enthusiasm.
Historical RSI Data: A Clear Uptrend
The dashboard highlights three key snapshots:
- 7 Days Ago: RSI at 36.18 → near oversold, reflecting weak demand.
- Yesterday: RSI at 51.82 → neutral zone, signaling recovery.
- Today: RSI at 63.07 → climbing into overbought territory.
This progression tells a compelling story: the crypto market has flipped from fearful selling pressure to bullish momentum in just one week.
Read Also: Overbought vs Oversold in Crypto: Why 24.9% of Coins Are Flashing RSI Warnings
What This Means for Bitcoin and Ethereum
- Bitcoin (BTC): Historically, BTC rallies often push RSI well above 70 before a correction sets in. At the current market level, BTC may still have some upside before hitting extreme overbought conditions.
- Ethereum (ETH): ETH typically lags BTC in RSI moves, but rising RSI values suggest growing strength in its price trend.
- Altcoins (SOL, DOGE, etc.): Smaller caps react more violently to sentiment shifts, meaning they may already be at higher RSI readings compared to BTC and ETH.
Why the RSI Jumped So Quickly
The rapid shift from 36.18 to 63.07 can be explained by:
- Liquidity Inflows: Fresh capital entering BTC and ETH pushed momentum higher.
- Market Sentiment: Fear and uncertainty gave way to optimism, with traders rushing back into positions.
- Short Covering: Bears exiting their trades added extra buying pressure.
The Risks of a Rising RSI
While the uptrend signals strong demand, traders should be cautious:
- Overheated Altcoins: Many smaller coins may already be stretched, prone to sharp pullbacks.
- Profit-Taking: As RSI nears 70, large holders may begin locking in gains.
- Volatility Ahead: High RSI often precedes sideways consolidation or short-term corrections.
Final Thoughts
The crypto market’s historical RSI values reveal an undeniable trend: in just one week, sentiment has flipped from cautious to bullish. With the average RSI now at 63.07, the market is approaching overbought territory, meaning investors should brace for increased volatility.
For long-term holders, this confirms growing confidence in the market. For short-term traders, it’s a reminder to balance optimism with caution—because when RSI runs too hot, the pullback often comes faster than expected.
