Your favorite crypto news blog

Bitcoin Breaks Record For Longest Weekly Uptrend Ever, According To “Parabolic” Indicator

Bitcoin 2020/12/17 21:00 by Tony Spilotro

Bitcoin had a major breakout last night, taking the asset to a price well above $20,000 to close out what has been a stellar year for the cryptocurrency.

Although 2020 was a monumental year for many reasons, it also marks a milestone for Bitcoin, in which a record has been set for the longest weekly uptrend in the asset’s history, according to a “parabolic” indicator.

Will Bitcoin Go Parabolic Following Longest Weekly Uptrend In Crypto History?

Although there have been very few full market cycles in cryptocurrencies, there have been at least three bull runs, and a pair of extended bear phases. The second bearish phase has only recently ended, leaving very little to look back at for comparison’s sake.

But what is obvious based on the repeating patterns, is that once Bitcoin breaches its former all-time high, the asset goes parabolic for nearly a year thereafter.

Related Reading | Bitcoin Consolidation At ATH: Expect Shake Outs, Traps, & More Before Next Leg

The resulting uptrends are the most powerful impulses on the asset’s price chart and deliver a proven ROI of between 2,000 and 5,000% across the two previous parabolic phases.

The third time is already proving to be the charm, with Bitcoin already setting a record for the longest weekly uptrend in its 12 year history, according to the Parabolic SAR indicator. What’s also notable, is that this feat has been achieved following the Black Thursday collapse, during one of the most unprecedented years yet, and did it before a new record was even set.

Is Bitcoin about to go parabolic? And what else does the Parabolic SAR indicator tell us?

bitcoin parabolic sar

A new record is set for the longest weekly positive string of SAR | Source: BTCUSD on TradingView.com

Understanding The Parabolic Stop And Reverse Technical Indicator

Bitcoin is expected to enter a parabolic phase any day now and might have already done so considering just how strong the uptrend has been thus far. But the Parabolic SAR indicator itself isn’t used to decipher if and when that happens. It instead, however, can help understand if and when that parabola has been broken.

In the chart above, the Parabolic SAR depicts the largest strength of weekly positive “SAR” under the price action. This string of bullish momentum has lasted over 200 days. The next longest uptrend on weekly scales was the 2017 rally that took the asset to $20,000 the first time.

Related Reading | Gold Naysayer Turns To Bitcoin: Overpriced, Model Says Max Value $74K BTC

The indicator itself is among the most straightforward to use, but the uses themselves vary. When price action passes through a SAR dot and closes, it is a signal that the trend has sufficiently reversed, and the parabola has been broken.

Note that in the chart above, the most recent trend change took place during the Black Thursday selloff, but it’s been nothing but incline since.

bitcoin parabolic sar

Monthly timeframes suggest the uptrend just started | Source: BTCUSD on TradingView.com

Traders can utilize the Parabolic SAR indicator, developed by J. Welles Wilder, Jr., as part of a trailing stop strategy where a stop loss is moved up or down along with each SAR dot. The idea here is that if and when the stop is hit, it will be hit in profit at a point where the trend had already reversed anyway.

The tool’s creator also designed the Average Directional Index, Average True Range, and Relative Strength Index. The tool suggests that although the weekly uptrend has already been record-breaking, monthly timeframes show that things are only just now getting started.

Featured image from Deposit Photos, Chart from TradingView.com

0 Like(s)

You should also read...

Bitcoin 22/11/19 20:00 by Tony Spilotro
Bitcoin Price Due For a Bounce According to ‘Nokia Curse’
It’s not uncommon for technical crypto analysts to compare Bitcoin price charts with that of other assets hoping to draw some comparisons that an actionable strategy can be derived from. The leading...
Read More
Bitcoin 01/08/20 22:37 by Nick Chong
Bitcoin Just Printed a Textbook Reversal Signal After Surging to $11,800
Bitcoin has seen another explosive move in the past 24 hours. As of the time of this article’s writing, the leading cryptocurrency has pressed higher to $11,800 for the first time in approximate...
Read More
Other 30/09/20 22:00 by Tony Spilotro
This Chart Suggests Chainlink’s Parabolic Rise Isn’t Finished
Chainlink volatility is increasing after the asset fell from its all-time high of $20. A 60% collapse sent the cryptocurrency plummeting, only to see a record-breaking bounce that beat any intraday th...
Read More
Altcoins 03/01/21 21:00 by Erie Maxwell
Ethereum Going Parabolic Toward $1,000 As Altcoins Rally
Ethereum price just had a major breakout from a low of $768 to a high at $978 on Binance and seems to be targeting $1,000 in the short-term. The digital asset was trailing behind Bitcoin as the flags...
Read More
Bitcoin 05/01/21 02:00 by Tony Spilotro
Bitcoin Uptrend From $20K Has Been Lost According To Parabolic Indicator
Bitcoin price is still trading well above $30,000 after a nearly $5,000 retreat from highs set at the turn of the new year. But during the first decent-sized correction in the cryptocurrency since $20...
Read More