Why The Crypto Market Could Soon Go “Parabolic”

Tony "The Bull" Severino

1 year ago

2 mins read

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Bitcoin price has begun to take off like a rocket, but the rest of the crypto market has remained at a crawl.

However, if the TOTAL crypto market cap chart from TradingView moves much higher, it could break a key level that in the past reversed the downtrend and sent the market “parabolic.”

Total Crypto Market To Trigger Parabolic SAR

The beginnings of a cryptocurrency bull market could be upon us, but you might not know it just yet. Unless you are looking at Bitcoin, that is.

Several altcoins started off the year with a bang, but have since fizzled out and gave back some of their gains to BTC, according to Bitcoin dominance and individual trading pairs against the top cryptocurrency by market cap.

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

BTCUSD has already reached the trigger level causing the SAR indicator to change directions and begin to appear below price action. Will the total crypto market cap chart do so next and what might that mean for performance?

The crypto market could go totally parabolic | TOTAL on TradingView.com

Could This Be The Sign 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, Average True Range, and many others. His tools are core tenets of technical analysis and some of the most popular and reliable today.

In 2015, after the Parabolic SAR was tagged, the total crypto market went on to surge more than 17,000%. In 2019, only 80% ROI followed before a reversal, but in 2020 the signal offered 800% to make up for it. The historic rally took the crypto market from a little over $200 billion to more than $2 trillion in total combined market capitalization.

Now, after spending more than 400 days below the Parabolic SAR, the downtrend has stopped. Could tagging the Parabolic SAR on the 3-week timeframe be the signal the trend has also officially reversed? And could the crypto market once again go parabolic like the indicator’s namesake?

Follow @TonyTheBullBTC on Twitter or join the TonyTradesBTC Telegram for exclusive daily market insights and technical analysis education. Please note: Content is educational and should not be considered investment advice. Featured image from iStockPhoto, 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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