Crypto Updates

Parabolic Bitcoin Indicator Points To Continued Bull Run Despite 15% Crash

BTC1!_2024-01-17_12-55-31

Recently, Bitcoin experienced a significant drop, crashing 15% from its 2024 highs around $49,000. This decline followed closely on the heels of the approval of 11 spot Bitcoin Exchange-Traded Funds (ETFs), a move that was initially met with optimism in the crypto community. The sudden downturn has left investors and traders analyzing the charts for clues about Bitcoin’s next move.

Is The Bullish Bitcoin Trend Over?

In the wake of this decline, technical analysis offers a beacon of insight. Notably, the correction was marked by a bearish engulfing candle on the daily chart, signaling a potential reversal in Bitcoin’s upward trend.

Accompanying this was a nasty wick – a long upper shadow on the candlestick chart, indicating a significant sell-off after prices peaked.

Further complicating the landscape was the opening of the CME BTC Futures with a sizeable gap down. Such gaps are often viewed as potential resistance levels, reinforcing the bearish sentiment.

The Parabolic SAR remains below price action | BTCUSD on TradingView.com

Stop And Reverse: A Ray Of Hope

However, amidst these seemingly negative signals, a ray of hope shines through from a “parabolic” technical indicator – the Parabolic SAR (Stop and Reverse).

Despite the tumultuous market conditions, the weekly BTCUSD Parabolic SAR indicator remains untagged, suggesting that the long-term uptrend is still intact.

This indicator, known for its effectiveness in identifying potential reversals in the market’s direction, paints a different picture from the immediate bearish signals and sentiment.

What Is The Parabolic SAR?

To fully grasp the significance of the Parabolic SAR in this context, it’s essential to understand what it is and how it functions. The Parabolic SAR is a popular technical analysis tool used primarily to determine the direction of an asset’s momentum and to provide entry and exit points.

The ‘SAR’ in Parabolic SAR stands for ‘Stop and Reverse.’ This indicator is represented on charts as a series of dots placed either above or below the price bars. A dot placed below the price is viewed as a bullish signal, while a dot above is bearish.

The unique aspect of the Parabolic SAR is its ability to act as a trailing stop loss. As the price of an asset moves, the Parabolic SAR adjusts, moving closer to the price line. This adjustment provides a dynamic method for traders to manage their positions, securing profits while limiting…

Click Here to Read the Full Original Article at NewsBTC…