Bitcoin “Supertrend” Begins As Buy Signals Stack On All Major Timeframes
October 15 2021 - 04:00PM
NEWSBTC
Bitcoin price is above $60,000 and bears are in disbelief. But they
shouldn’t be, as bulls have long been in control of the
trend. It had only been lower timeframes that had flipped
bearish, while the most dominant trend had remained up. According
to the Supertrend, all of the most important timeframes have since
flipped bullish, with buy signals appearing across the board. Here
is a closer look at what the tool says, the only remaining
timeframe without a buy signal, and more information on what the
Supertrend technical indicator does. What The Supertrend Says About
The Bitcoin Bull Run When Bitcoin and other cryptocurrencies are
trending, they move fast and hard. During uptrends, coins post tens
to hundreds of thousand percent rallies. Downtrends then wipe out
99% of that progress. The cycle then repeats and it happens all
over again. Trends take place across multiple timeframes. For
example, a short-term downtrend on daily timeframes might last
weeks, while a monthly downtrend could take years to turn around.
The same is true for the opposite direction, which is what bears
missed this time around. Related Reading | How 90-Year Old Market
Wizardry Predicted The Bitcoin Breakout Bitcoin price flipped
bearish on daily and even weekly timeframes, but failed to flip
fully bearish on the monthly timeframe. That is at least according
to a technical indicator called the Supertrend, which gives fairly
straightforward buy and sell signals. On monthly timeframes,
Bitcoin never fell bearish, and has recently flipped back bullish
on the daily and weekly timeframe. From left to right: Monthly,
Weekly, Daily timeframes | Source: BTCUSD on TradingView.com Buy
Signals Stack As BTC Approaches Pivotal Point According to
eLearnMarkets, the Supertrend is a trend following indicator
“similar to moving averages.” It is plotted along with price
action, using only a period and a multiplier for its calculation.
“When we construct the Supertrend indicator strategy, the default
parameters are 10 for Average True Range (ATR) and 3 for its
multiplier. The average true range (ATR) plays a key role in
‘Supertrend’ as the indicator uses ATR to compute its value and it
signals the degree of price volatility,” the site description
reads. Essentially, the tool projects a moving average-like line
based on the Average True Range, when which broken, issues a buy or
sell signal depending on the direction. The two-week still hasn't
triggered a buy signal | Source: BTCUSD on TradingView.com Buy
signals have been issued on daily, weekly and monthly as pictured
at the top of the article, but the chart directly above here shows
that the two-week timeframe has yet to be penetrated, leaving one
more box for BTC to check before new highs are guaranteed. Related
Reading | Bitcoin Price Prepares To Blast Off Back Into RSI “Bull
Zone” The fact buy signals are only just triggering as Bitcoin is
hitting former resistance and what was supposed to be the bull
market “top” is probably the best proof yet that what happened in
April 2021 was no cycle peak. As for what price that might happen
yet, we’ll be watching the Supertrend closely for when the next
sell signal triggers. Follow @TonySpilotroBTC on Twitter or
join the TonyTradesBTC Telegram for exclusive daily market
insights and technical analysis education. Please note: Content
is educational and should not be considered investment
advice. Featured image from iStockPhoto, Charts from
TradingView.com
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