Today, the price of Bitcoin increased by 5%, briefly surpassing $19,000. It is presently the greatest daily increase since the FTX crash in 2023.
Moreover, the rapid surge marked a level that, according to the weekly Parabolic SAR, signalled a likely trend shift. The technical indicator has lived true to its moniker in the past.
The beginning of 2023 has been favourable for cryptocurrencies. In contrast, Bitcoin has been rather moderate up until now.
Following today’s CPI data release of 6.5% and Vice President Joe Biden’s victory lap on inflation, Bitcoin’s price increased by $1,000, temporarily surpassing $19,000.
What transpired throughout the course of the week was more significant than what occurred today. Since May 2022, BTCUSDT (Binance) reached the Parabolic SAR weekly for the first time. The fall of LUNA pushed Bitcoin and other cryptocurrencies lower, initiating the second, more aggressive phase of the current decline.
The same Parabolic SAR signal was also generated prior to the 2019 crypto market surge and the 2020 to 2021 bull run.
The Parabolic SAR is a technical indicator created by J. Wells Wilder, Jr. that is used to identify changes in trend direction. The direction of the trend is determined by a visual overlay of SAR dots that float above or below price activity.
When SAR dots are labelled, it indicates that a trend may “halt and reverse” – which is exactly what SAR stands for. Therefore, it is particularly useful for timing entrances and exits. Due to the fact that the SAR dots rise or fall in tandem with the trend, they may be used consistently to place trailing stop losses.
Also Read: MetaMask alerts users of crypto about address poisoning
