Square could set up a bitcoin mining system

Bitcoin price is over $ 60,000 and the bears are in disbelief. But they shouldn’t be, because bulls have been in control of the trend for a long time. It was just lower timeframes that flipped bearish while the most dominant trend remained on the upside. According to Supertrend, all major timeframes have been bullish since then, with buy signals popping up across the board.

Here’s a closer look at what the tool said, the only remaining time frame with no buy signal, and more information about what the Supertrend technical indicator is doing.

What the supertrend says about the Bitcoin Bull Run

When bitcoin and other cryptocurrencies are trending, they move fast and hard. During uptrends, coins rally from tens to hundreds of thousands. Downtrends then nullify 99% of that progress. The cycle then repeats and it happens over and over again.

Trends take place over several time periods. For example, a short-term downtrend on daily timeframes can last weeks while a monthly downtrend can take years to turn. The same goes for the opposite direction that the bears missed this time.

Related reading | How 90 year old market magic predicted the Bitcoin outbreak

Bitcoin price turned bearish on the daily and even weekly timeframes, but not entirely bearish on the monthly timeframe. That’s at least one technical indicator called Supertrend that gives pretty simple buy and sell signals.

Bitcoin never fell bearish on the monthly timeframe and has recently returned to bullish on the daily and weekly timeframes.

Left to Right: Monthly, Weekly, Daily Timeframes | Source: BTCUSD on TradingView.com

Buy signal stacks when BTC nears the pivot point

According to eLearnMarkets, the supertrend is a trend-following indicator “similar to the moving averages”. It is shown together with the price movement, whereby only a period and a multiplier are used for its calculation.

“When we construct the Supertrend indicator strategy, the standard parameters are 10 for the Average True Range (ATR) and 3 for its multiplier. Average True Range (ATR) plays a key role in ‘Supertrend’ as the indicator uses ATR to calculate its value and signals the level of price volatility, ”the site description says.

In essence, the tool projects a moving average-like line based on the Average True Range, which will give a buy or sell signal depending on the direction when it is broken.

The two weeks have still not triggered a buy signal | Source: BTCUSD on TradingView.com

Buy signals have been issued daily, weekly and monthly as shown in the article above, but the graph directly above shows that the two-week timeframe has yet to be broken so that BTC can check another box before new highs are guaranteed.

Related reading | Bitcoin price is preparing to start back into the RSI bull zone

The fact that buy signals are only just beginning to be triggered as Bitcoin encounters previous resistance and what should be dubbed the bull market “top” is probably the best evidence yet that what happened in April 2021 was not a cycle high.

As for the price that could still happen, we will be watching the supertrend closely when the next sell signal is triggered.

Follow @TonySpilotroBTC on Twitter or join the TonyTradesBTC Telegram for exclusive daily market insights and technical analysis training. Please Note: The content is educational and should not be viewed as investment advice.

Featured image from iStockPhoto, charts from TradingView.com

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