Why the Crypto Market May Soon Go ‘Parabolic’
The Bitcoin price has started to take off like a rocket, but the rest of the crypto market has remained on a roll.
However, if the TOTAL Crypto Market Cap Chart from TradingView moves much higher, it could break a key level that previously reversed the downtrend and sent the market “parabolic.”
Total crypto market to trigger parabolic SAR
The beginning of a cryptocurrency bull market may be upon us, but you might not know it yet. Unless you’re looking at Bitcoin, that is.
Several altcoins started the year with a bang, but have since faded away and given back some of their gains to BTC, according to Bitcoin dominance and individual trading pairs against the top cryptocurrency by market capitalization.
The rest of crypto is slightly behind, but may soon start another parabolic rally, if TOTAL crypto market price action can mark the Parabolic SAR indicator on the 3-week time frame.
BTCUSD has already reached the trigger level, which causes the SAR indicator to change direction and begin to appear under price action. Will the Total Crypto Market Value Chart Do Next and What Could That Mean for Performance?
The crypto market could go totally parabolic | TOTAL on TradingView.com
Could this be a sign that the trend has officially reversed?
Parabolic SAR tells traders when the previous trend has stopped, and officially reversed. Created by J. Welles Wilder, the Parabolic SAR is said to be shockingly accurate. So accurate that it is often used as part of a trailing stop loss strategy.
Wilder also created the Relative Strength Index, Average True Range and many others. His tools are the core principles of technical analysis and some of the most popular and reliable today.
In 2015, after the Parabolic SAR was marked, the overall crypto market continued to increase by more than 17,000%. In 2019 only 80% ROI followed before a reversal, but in 2020 the signal offered 800% to make up for it. The historic rally took the crypto market from just over $200 billion to more than $2 trillion in total market capitalization.
Now, after spending more than 400 days under the Parabolic SAR, the downtrend has stopped. Could the marking of the Parabolic SAR on the 3-week time frame be the signal that the trend has also officially reversed? And could the crypto market again go parabolic like the indicator’s namesake?
