While the Bear Market for Bitcoin continues, the growth of the trading community for Crypto is growing by leaps and bounds. Coindesk actually posted a story outlining how to use RSI on Bitcoin:
The author has the audacity to explain RSI to Crypto noobs as if they just arrived on a boat after a month long float across the pond from Africa. But the application of RSI on a ETHUSD chart is interesting indeed, RSI seems to be much more powerful on ETHUSD than on EURUSD or your common Forex pairs where RSI is about as useful as Cramer's stock picks.
Perhaps the Crypto market itself is so new and pure that fundamental technical analysis works better than say markets like stocks where manipulation has become more of the norm than the abnorm.
Crypto markets are manipulated but as there is no central authority they are more difficult to manipulate, and certainly the methods of manipulation are very different.
The Rise of the Crypto Day Trader
You've heard the stories, a trader turned $1k into $47k in a year. Yeah, it happened. But that doesn't mean anything - and it isn't statistically fair, because it doesn't say also that for every 1 trader that did that, there were 500 or more that turned $1k into zero. Then there are the tax losses - stories of traders that made millions in Bitcoin only to lose it later on alt-coin investments but were stuck with a huge IRS tax bill.
But still, you haven't been hearing about Tim Sykes making millions trading penny stocks lately, although he has likely done well selling books. Most of the day-trading stories are about Crypto. It seems that in many respects, Crypto is like .com stocks in the late 90's. Here's one about a mysterious trader that made $200 Million.
As more and more products get announced, and the exchanges beef up their trading infrastructure, things will get more interesting. Some Crypto exchanges offer more than 400+ pairs to trade. There are some interesting advantages to Crypto that are beyond the scope of a simple article - but some have created funds from this, it has become interesting for many on Wall St. (although, out of the huge amount of Crypto hedge funds that opened during the fall frenzy, many of them have closed or failed).
For traders, it's just another market to make money in. Another asset to trade. Futures trading has had it's time and Forex was always a bit too complicated and unfair for the average trader. So Crypto although it poses a new set of challenges, also offers a new set of opportunities to traders.