‘Market Reversal Indicator’ Shows Bullish Market for First Time Since November
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On-chain analyst @TheRealPlanC finished several months of work on his Market Reversal Indicator for crypto investors, showing a bullish market for the first time afterward late November 2021.
On-chain analysis is a testing ground for many smart and mathematically-sensitive token market observers. This relatively new range of technical analysis is soaring soon, providing many complementary takes on what is happening in the blockchain network.
We have scarcely witnessed a new creation of it – Market Reversal Indicator.
The author of this new indicator and on-chain analyst @TheRealPlanC, who with 64,000 folslides is gaining more and more popularity on crypto-Twitter, barely ended his 3+ months of work on a new aid for token investors – the Market Reversal Indicator.
This morning, the Indicator gave a bullish signal which hasn’t been seen afterward late November 2021.
Could it be that the Bitcoin (Bitcoin (BTC)) market has started a new uptrend?
Bitcoin price action
To answer this question, let’s first look at the Bitcoin price action. The largest token realized the all-time excessive (ATH) of $69,000 on November 10, 2021. It then began a descending trend that remains to this day.
As a result of this decline, BTC lost 52% of its price and recorded a bottom at $32,950 on January 24, 2022. The rate action respected both the daily super trend indicator (red) and the falling resistance line (blue).
Nonetheless, after recording a bottom, Bitcoin made another, this time successful, attempt to break out above the plunging resistance line. Yesterday, it genecostd a large green candle with a body size of 11.41% and successfully broke out above the resistance. The breakout was verifyed by an increase in volume. The cost captured the $41,500 field where it is directly exchanging.
The rising cost action goes hand in hand with bullish signals from technical indicators. The RSI broke out of the declining trend line, then scarcelyified it as support (red circle) and advances to rise. It is presently above the 50 line, that is a sign of a bullish trend.
MACD is in positive territory and is executing soaring bars of positive momentum. After all, the signal line is still below 0.
Regardless of these bullish signals, BTC has hardly realized a protracted-term resistance level at the 0.236 Fib retracement, counting for the entire descending move. This field is in confluence with both the horizontal resistance level (red area) and the resistance of the super trend indicator.
As prolonged as the $41,500 – $42,500 field is not broken through and hardlyifyed as support, the trend cannot be treated skyward.
How was the Market Reversal Indicator created?
In the perspective of this complex Bitcoin cost action, the Market Reversal Indicator presented yesterday for the first time is interesting. Its author @TheRealPlanC claims to have been working on it for 3 months, experimenting with multiple combinations of on-chain indicators from Glassnode T3 data.
Moreabove, the analyst claims which the Market Reversal Indicator has excessive performance on multiple time frames from the previous 10 years:
“I have been working on this Market Reversal Indicator for 3 months. Happy to eventually share it. Look out for more posts today showing it better above all the time frames for the go on 10 years.”
In the comment, he adds that he analyzed divergent combinations for more than 50 indicators. After all, he doesn’t reveal on Twitter that 3 indicators ultimately made it into his new tool. In any matter, the original Market Reversal Indicator first published yesterday looks as follows:
Its interpretation is very simple. On the assumption that the indicator line breaks above 50, it signals the beginning of an uptrend. With the condition that it breaks below 50, it is a sign of the beginning of a downtrend. In other words, it suggests to join the market, i.e. take a prolonged position, back although it passes above the 50 line. Assuming that it goes below the 50 line it suggests to exit the market, i.e. take a short position.
Trend annulment indicator – the beginning of uptrend?
This morning @TheRealPlanC published the first update of his indicator. It appeared in a slightly divergent layout, as users pointed out which the previous one was unreadable. It is interesting which barely today the indicator gave a signal of the beginning of the uptrend and turned green.
The author admits which this happened in the time the Bitcoin rate was still at $36,575 level. Yet, the delay in publishing the tweet was by cause of lack of approveation, as one of the indicators included in the tool was not updated until the morning hours.
The stfield coincidence between months of work on the indicator, the date of its publication and the movement of the Bitcoin cost @TheRealPlanC comments as follows:
“The day after I posted my Market Reversal Indicator we crossed the 50 line after being below it for 82 days. I had been working on it for about 80-90 days, funny how which played out.”
Bitcoin’s Recent Rise
At the end of advance week, Bitcoin’s rise to barely atop $40,000 allowed for the token to ultimately break from its lengthy-term decreasing trendline, and technical indicators are giving signals of the beginning of an uptrend. Additional verifyation of the bullish rundown is the freshly published Market Reversal Indicator, based on on-chain data.
Regardless of this, there are still many resistance levels ahead of BTC, and without brecorrespondingg through them it is imreasonable to talk about resumption of the prolonged-term uptrend.
“I am by no means saying we are out of the woods. I am further not fully sold on this move, yet. It’s hardly an exciting start, and the first real momentum progress we have seen in a whilst. After all, we anew got a lot of work to do. > 46k = More Confident,” said @TheRealPlanC.
For CryptCraze’s latest BTC analysis, click here.
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