Bitcoin’s supertrendline has turned upside in key time frames
Bitcoin rebounded over $ 60,000 when bulls took control of the market. According to the Supertrend indicator, all important time frames have appeared and buy signals appear on the board.
Here’s a closer look at what the indicator is showing.
What is the supertrend showing about Bitcoin’s bull run?
When bitcoin and other cryptocurrencies are trending, they move very quickly and strongly. During uptrends, coins often print rallies of hundreds to thousands of percent. The downtrend then nullifies 80% of this progress. The cycle then repeats and it happens again.
Trends take place in multiple time periods. For example, in the daily timeframe, a short-term downtrend can last for weeks, while a monthly downtrend can last for years. The same goes for the opposite direction that the bears lacked this time.
The sharp decline not long ago caused Bitcoin’s trend to turn bearish on the daily and weekly timeframes, but it failed to reverse the monthly trend. The Supertrend indicator shows this very clearly.
Supertrend is an indicator that uses absolute highs and lows to determine whether the trend is bullish or bearish. The fact that the price is above the super trend line (blue line) indicates that the trend is up and vice versa (red line).
Currently the supertrend has shifted back to an uptrend in both the daily and weekly timeframes, in the same direction as the monthly timeframe. This shows that Bitcoin is in a very strong upward trend.
BTC / USD 1-day, 1-week, 1-month frame | Source: TradingView
However, the supertrendline on the two week timeframe is still on a downtrend. Looking at past data, it rejected the price in August 2020 and caused a sharp correction afterwards.
BTC / USD 2-week chart | Source: TradingView
Therefore, while the trend seems to be in favor of the bulls, the appearance of a (bearish) supertrend line on the two week timeframe should be used with caution. Hence, traders should keep a close eye on this line to know when the bulls have fully taken over the market.
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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
According to Newsbtc