In 2020 and 2021, the cryptocurrency market attracted millions of new traders and investors. Lack of regulation, high liquidity, and modern exchanges significantly lowered the entry threshold for new market participants. In 2021, over 5 million Americans were regularly involved in cryptocurrency trading. At that time, the interest in market indicators and trading strategies remained low, leading to the conclusion that most investors did not use decision-support indicators. The correct and backtested use of technical analysis signals can give the trader a significant advantage over most market participants. This work introduces an algorithmic approach to examining the effectiveness of the signals generated by one of the most popular market indicators, the Relative Strength Index (RSI). A model corresponding to an actual cryptocurrency exchange was used to backtest the strategies. The results show that the RSI as a momentum indicator in the cryptocurrency market involves high risk. Using alternative RSI applications can allow traders to gain an advantage in the cryptocurrency market. Comparing the results with the traditional buy and hold strategy shows the credible potential of the indicated method and the usage of signals generated by the technical analysis indicators.