With a fairly positive movement towards the North, the current crypto market has a very bullish signal that can bring a smile to investors.
NewsBTC reports that, a tool known as SuperTrend provides straightforward buy and sell signals, assisting in identifying a shift in the trend's direction. Developed by Olivier Seban, this trend-following indicator, like other tools of its kind such as moving averages, may experience a delay in response to price movements.
Depending on whether the price chart indicates a bullish or bearish market, the SuperTrend is represented as a trend line above or below the price action. The trend line functions as a dynamic level of support and resistance, adjusting with the price movements and potentially serving as a useful component of a trailing stop loss strategy.
Whenever the price touches the trend line, it causes a signal to be triggered, and the color of the trend line switches from red to green (or vice versa). As shown in the example below, a buy signal was initiated on the total weekly crypto chart last week. More significantly, following the close of last night's weekly chart, the signal has been officially confirmed.
Now that a buy signal has been activated on the TOTAL crypto weekly chart, let's examine the historical outcomes of this powerful technical tool. This latest buy signal marks the first confirmed signal since July 2020. The previous occurrence of the word "buy" appearing in the price chart resulted in the total crypto market expanding from just under $300 billion to nearly $3 trillion, representing a tenfold increase.
Nonetheless, the previous buy signal led to an instantaneous loss due to the devastating selloff on Black Thursday at the beginning of the COVID pandemic. However, if the tool had been implemented as a trailing stop loss strategy, the losses would have been mitigated in the end.
The buy signal preceding that occurred in the weeks that followed the bottom of the bear market in 2018. At the time, nobody knew it was the bottom, but the SuperTrend indicator correctly predicted it. Going back even further to the 2015 bear market bottom, the weekly SuperTrend accurately anticipated the shift from bear to bull, except for a misfired signal observed following the 2018 buy signal.
The initial buy signal ever to be issued on the TOTAL weekly crypto chart led to a 200-fold increase, with the total market cap rising from roughly $3 billion to $750 billion. Now that another "buy" signal has been permanently activated on the weekly TOTAL chart with the SuperTrend switched on, what kind of results might it provide for the future to examine?
Currently, global sentiment remains the main reference point for investors to measure the potential bullishness from several technical perspectives. Risk appetite seems to be once again the primary determinant for medium-term trends. [pc]
0 Komentar