Right now its the ideal moment to use the RSI to trade. After big gains like we just had, check the 5 minute charts and you will see every time the RSI was oversold bulls bought the dip, when this stopped happening we saw the small dump to 7000$.
RSI doesn't hold much value as long as the demand is stronger than the supply that's being dumped on the market. It has been oversold for so long that people kept calling a dump till the dump actually came.
If you call dumps long enough you'll be eventually right. It's not based on any technical understanding, but purely a lucky guess. The market has fooled a lot of chart cowboys in the last couple of weeks.
People are better off staying away from short term trades and stick to hodling and secure small fractions of profit every 20-25% the price goes up from here. Trading retail fomo is gambling, can't make anything else of it.
Actually it does hold a lot of value but you have to use it in the opposite direction. As I said, bitcoin had big gains these 2-3 weeks, the RSI was overextended on the daily chart for days, however when you look at the smaller time frames like the 5 minute chart you can see the RSI works very well in the opposite direction (when it's oversold)
Clear example here:
https://gyazo.com/63cea083382aa3fd8376a6496a97b35bLiterally everytime the RSI was oversold a big bounce happened, 200-300$ within a few minutes.