The default RSI thresholds
 In his original work on RSI, J. Welles Wilder Jr. proposed 30 and 70 as oversold and overbought thresholds based on observations from commodity markets in the late 1970s. Over time, those levels became standard across trading platforms and educational content. 
 But they were never meant to be universal laws. RSI thresholds work differently depending on the market environment, timeframe, and asset volatility. 
Why 30 and 70 often fail in crypto
 Crypto markets are significantly more volatile than the markets Wilder originally studied. During a strong bull trend, RSI(14) on the 4H chart can remain above 70 for several days without a meaningful pullback. 
 Traders who sell every overbought signal often end up fighting the trend. Likewise, during panic selloffs or capitulation events, RSI can stay below 30 while price continues falling aggressively. 
Adjusting RSI thresholds by market regime
  • Strong bullish trend: Many traders shift RSI levels to 40/80. Pullbacks rarely reach 30, and market tops often do not appear before RSI reaches 80. 
  • Range-bound market: The traditional 30/70 levels tend to work well because mean reversion becomes the dominant behavior. 
  • Strong bearish trend: Some traders shift RSI levels to 20/60 because relief rallies often fail before RSI reaches 70. 
Different assets require different settings
 For large-cap assets like BTC and ETH, the traditional 30/70 thresholds are generally usable. However, for highly volatile mid-cap and low-cap altcoins, wider bands such as 25/75 may produce cleaner signals. 
 This is why advanced traders often customize RSI thresholds based on the asset and timeframe they are trading.