Question #168 ·
How do simple moving averages and the Relative Strength Index (RSI) help assess Bitcoin's momentum?
- RSI alone indicates future price targets while SMAs are too lagging and irrelevant for traders.
- Crossovers of short and long SMAs reveal trend direction while RSI shows strength or weakness. Right answer
- Moving average convergence divergence often outperforms simple SMAs and RSI when predicting daily trend reversals.
Why is this the correct answer?
This is correct because simple moving averages (SMAs) help identify when a shorter term trend crosses above or below a longer term trend, signaling potential bullish or bearish momentum, and the Relative Strength Index (RSI) measures overbought or oversold conditions, together giving a clear picture of ongoing price momentum.