This “super” buy signal suggests that the Crypto Bull trend is strengthening
It’s a bird! It’s a plane! It’s a SuperTrend Buy Signal on the Total Crypto Market Value Chart, Calculated by TradingView! Find out exactly what this signal means and what has happened in the past when it has appeared.
Why the Supertrend matters, even without the Cape
The study of technical analysis looks at a variety of chart patterns, candlesticks, indicators and more to get an overview of the trend and whether an asset is overbought or oversold, for example.
One such tool called SuperTrend provides simple buy and sell signals, helping to indicate a change in the direction of a trend. The trend-following indicator was developed by Olivier Seban and, in the same way as other trend-following tools – for example moving averages – can be behind price movements.
The SuperTrend is plotted as a trend line above or below price action depending on whether the price chart is bullish or bearish. It acts as dynamic support and resistance that moves up or down with price action, making it potentially useful as part of a trailing stop loss strategy.
If the trend line is touched by the price, the color of the trend line changes from red to green (or vice versa) and a signal is triggered. As you can see below, a buy signal was triggered on the weekly total crypto chart last week. More importantly, after yesterday’s weekly close, the signal has officially confirmed.
SuperTrend says "buy," but should you? | TOTAL on TradingView.com
Total Crypto Market Buy Signal Triggered, What’s Next?
With a buy signal now on TOTAL weekly cryptographics forever ahead, let’s review the past performance of the “super” technical tool. The buy signal is the first confirmed signal since July 2020. The total crypto market grew 10-fold from under $300 billion to just under $3 trillion after the words “buy” appeared on the price chart.
Before that, however, the previous buy signal resulted in an immediate loss due to the disastrous Black Thursday sales at the onset of COVID. If the tool had been used for a trailing stop loss, the losses would ultimately have been minimal.
A long-term look at SuperTrend buy signals | TOTAL on TradingView.com
The buy signal before it came in the weeks after the bottom of the 2018 bear market. No one knew it was the bottom at the time, but SuperTrend did. Going back even further to the bottom of the bear market in 2015, the weekly SuperTrend managed the trend change from bear to bull without a failed signal seen after the 2018 buy signal.
The first ever buy signal given on the TOTAL weekly crypto chart resulted in a 200x increase from approximately $3 billion to $750 billion. With another “buy” permanently on the weekly TOTAL chart with the SuperTrend turned on, what could it bring for results that the future will eventually look back on?
SuperTrend buy signal confirmed on $TOTAL #Crypto chart – the first since July 2020 before a 10x rally. pic.twitter.com/0ZG0giOlsY
— Tony “The Bull” (@tonythebullBTC) 20 February 2023
