Why the Crypto Market Could Soon Go “Parabolic”

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Bitcoinprice started to take off like a rocket, but the rest of the crypto market lagged behind.

However, if TradingView’s TOTAL crypto market cap chart rises much further, it could break a key level that in the past has reversed the downward trend and made the market “parabolic”.

Total Crypto Market Will Trigger Parabolic SAR

The beginnings of a cryptocurrency bull market could be upon us, but you might not know it yet. Unless you’re looking at Bitcoin, of course.

Several altcoins started the year strong, but have since crashed and returned some of their gains to BTC, according to Bitcoin dominance and individual trading pairs against the top cryptocurrency by market capitalization.

The rest of the crypto is slightly behind, but could start another parabolic rally soon, if the price action of the TOTAL crypto market can mark the Parabolic SAR indicator on the 3-week period.

BTCUSD has already reached the trigger level, causing the SAR indicator to change direction and begin to appear below the price action. Will the total crypto market cap chart do so 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?

The 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, it is often used as part of a trailing stop loss strategy.

Wilder also created the Relative Strength Index, the Average True Range and many others. Its tools are fundamentals of technical analysis and some of the most popular and trusted today.

In 2015, after the Parabolic SAR was marked, the total crypto market grew by over 17,000%. In 2019 only 80% ROI followed before a reversal, but in 2020 the signal offered 800% to offset it. The historic rally took the crypto market from just over $200 billion to over $2 trillion in total combined market capitalization.

Now, after spending more than 400 days below the parabolic SAR, the downtrend has come to a halt. Could the parabolic SAR marking on the 3-week time frame be a signal that the trend has also officially reversed? And could the crypto market once again become parabolic like the indicator’s namesake?

Follow @TonyTheBullBTC 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 considered investment advice. Featured image from iStockPhoto, Charts from TradingView.com

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