Indicator Overview

The Bitcoin Miners Velocity RSI is a specialised momentum oscillator designed to track the alpha and volatility of the Bitcoin mining sector. Unlike a standard RSI, the Velocity RSI utilises a rate-of-change smoothing algorithm that filters out the high-frequency noise inherent in mining equities, providing a clearer picture of whether a specific miner is in an expansionary or contractionary phase.

The indicator features a dynamic color gradient that transitions from cyan (oversold/undervalued) to magenta (overbought/extended).

It allows for a dual-perspective analysis: pricing miners in USD to gauge traditional equity performance, or pricing them in BTC to identify if a miner is outperforming the underlying asset. The price of the selected miner is overlaid on a secondary logarithmic axis, enabling traders to spot divergences between price action and momentum velocity across daily, weekly, and monthly calculation modes.

How To Use

Traders can use the Miner Velocity RSI to identify regime shifts in mining stocks. When the RSI is in the Cyan zone (below 20), the miner is historically exhausted to the downside; this is often where long-term value is found, especially if the "Priced In BTC" mode shows a similar bottom, indicating the miner is exceptionally cheap relative to Bitcoin. Conversely, a move into the Magenta zone (above 80) signals that the miner is overextended and may be due for a mean-reversion.

The Weekly RSI Mode is particularly effective for identifying macro bottoms in the mining sector. A V-shaped recovery from the 20-level on the weekly timeframe often precedes massive multi-month rallies. Users should also monitor the 50-level (Midline); a sustained break above the midline suggests that the miner has shifted from a bearish trend into a bullish momentum phase. By toggling the SMA smoothing, you can remove short-term fluctuations to identify the primary trend of the miner's relative strength.