Aug 04, 2023 04:45
Bitcoin has flashed an important high timeframe buy signal on the Vortex Indicator. Find out why this suggests a storm of buying could be brewing in crypto — and why it could soon suck up everything in its path. Forecasting A Storm in Crypto Like a meteorologist can with some degree of accuracy forecast the weather, a technical analyst can increase the probability of predicting price movements. Both fields rely on on watching for potentially cyclical behavior, repeating patterns, seasonality, and historical trends. But instead of classifying cloud formations, technical analysts rely on Ichimoku clouds expanding and contracting with volatility, or other similar tools. Related Reading: This Long-Term Bitcoin Price Average Is Setting ATHs Yet another technical tool related to the elements, the Vortex Indicator, says that Bitcoin buying season is around the corner, and once it starts, it could suck in everyone that’s sidelined and then some. The Vortex Indicator has given a buy signal | BTCUSD on TradingView.com About The Bitcoin Vortex Indicator The 1M Bitcoin Vortex Indicator has crossed bullish. According to Wikipedia, a buy signal triggers when VM+ crossed above VM-. First revealed by creators Etienne Botes and Douglas Siepman in 2010, the tool helps “identify the start of a new trend or the continuation of the existing trend.” Notably, in the past, each time the buy signal triggered, the bottom in Bitcoin was in. Even during the COVID collapse the monthly Vortex Indicator didn’t give another sell signal. Also worth mentioning is the fact that it appears to give its signal on the later side, after a bear or bull market is already visible. This speaks to the tool’s use for confirming trend changes. Only a handful of the buy side signals have triggered in BTCUSD history, and each time cryptocurrencies stormed substantially higher. Related Reading: Bitcoin Bollinger Bands Are The Tightest Ever, What Happens Next? The Vortex Indicator was inspired by the work from Viktor Schauberger, an Austrian forest caretaker, naturalist, philosopher, inventor and pseudoscientist. Schauberger studied the flow of water in rivers and turbines during his career. Etienne Botes and Douglas Siepman developed the “idea that movements and flows within financial markets are similar to the vortex motions found in water.” In nature, vortices are powerful forces inherent to whirlpools, tornados, and other powerful storms, known for sucking in everything in its path. Even the Great Red Spot on Jupiter is a vortex circling uncontrollably for hundreds – potentially thousands – of years. With this storm potentially changing direction, a wave of buying could be in the forecast. The #Bitcoin monthly Vortex Indicator has triggered a buy signal It is used to “spot trend reversals and confirm current trends” Introduced by Etienne Botes and Douglas Siepman in 2010, the Vortex Indicator gives a buy signal when VM+ crosses VM- pic.twitter.com/n82LyOv9ru — Tony "The Bull" (@tonythebullBTC) August 4, 2023 Tony is the author of the CoinChartist (VIP) newsletter. Sign up for free. Follow @TonyTheBullBTC & @coinchartist_io on Twitter. Or join the TonyTradesBTC Telegram for 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
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