“Most Profitable Buy Signal” Triggers As Bitcoin Consolidates Below ATH

Tony "The Bull" Severino

1 year ago

3 mins read

bitcoin profitable buy signal hash ribbons

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Bitcoin is the best investment of 2020, up more than 150% year-to-date during a year filled with more uncertainty than ever before. That same uncertainty has helped bring the cryptocurrency back to prices near $20,000.

And rather than rejection and bear market this time around, Bitcoin’s most profitable buy signal ever has just triggered, suggesting that the returns from this year are just the start of what is to come. Here’s a closer look at the significance of the signal, and some theories on what potentially to expect if history repeats itself and the tool proves accurate et again.

Bitcoin Hash Ribbons Trigger Buy On Daily Timeframes, Current Consolidation Could Be Bullish

Bitcoin is a unique asset and requires a specific set of tools to properly analyze the health of the asset. Technical analysis is helpful in understanding trend turning points, and where resistance and support might lie.

But what’s been more beneficial recently than charting price patterns or watching traditional indicators and oscillators give failed signals left and right, has been focusing on fundamentals.

Data involving an uptick on newly created BTC addresses, assets moving off of exchanges en masse, and more, have been far more useful in determining what might happen next in the crypto market.

Another fundamental tool created by Bitcoin expert Charles Edwards is a bit of both a technical indicator and quantitative visual tool in one. The Hash Ribbons turn the hash rate and mining difficult into moving averages that can be used to signal when to buy, and when miners are capitulating.

That buy signal, according to the tool’s creator, just triggered, and with it happening just below $20,000 the recent consolidation could be bulls building strength to rip through resistance.

The Hash Ribbons signaled "buy" on daily timeframes | Source: BTCUSD on TradingView.com

The Most Profitable Signal In Crypto Starts With A Blue Dot, Ends With Investors In Green

The “blue dot” signaling buy has just appeared on daily timeframes, according to Edwards. But this is particularly notable because the Hash Ribbons just so happen to be Bitcoin’s most profitable buy signal.

The chart below shows just how effective it has been since Bitcoin bottomed in 2018, which was the first major buy signal since the 2017 peak. There were more signals all throughout the last two years that each time resulted in strong upside. But those who are just learning of the Hash Ribbons up until this point, still haven’t seen what the tool is capable of.

The trigger hasn't yet appeared on weekly timeframes which have in the past proven profitable | Source: BTCUSD on TradingView.com

Zooming out further in the chart below, the final buy signal after each halving, is what kicks off the bull market, and Bitcoin never comes back to former prices. The fact that this is again triggering just as Bitcoin is trading below its previous peak, is extremely bullish for the future of the cryptocurrency market.

Zooming out the furthest shows why the indicator is called the "most profitable" | Source: BTCUSD on TradingView.com

Consolidating below resistance is typically a bullish event, as if the resistance was going to pose a threat, it would likely do so as the asset first approached. When the crypto asset consolidated below $10,000 earlier this year, the result was the journey here.

With a buy signal triggering that in the past resulted in 5800% and 3600% returns happening with Bitcoin at all-time high, the target of this current signal could be its greatest climb yet.

Featured image from Deposit Photos, Charts from TradingView.com

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.

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