BitcoinShort
Bitcoin NVT Topping Pattern
Now that the NVT indicator is back in the red zone, I wanted to look back at the Bitcoin chart to spot potential topping patterns.
I am seeing a likely NVT cross with its signal line by the end of the day (still unconfirmed).
And at the same time, I am plotting here the Dinapoli Momentum Switch indicator in search for key correlations.
And we can see two potential outcomes out of this event happening when the NVT line was red:
a) The start of a significant down correction
b) A choppy consolidation period in front of us where NVT would keep flashing red for some time... just to resolve in a significant down correction
Either way, the results look very consistent... not even a single time a bull trend has started right after these two factors were in confluence. I'd say it became quite the opposite. Is this time different?
I am seeing a likely NVT cross with its signal line by the end of the day (still unconfirmed).
And at the same time, I am plotting here the Dinapoli Momentum Switch indicator in search for key correlations.
And we can see two potential outcomes out of this event happening when the NVT line was red:
a) The start of a significant down correction
b) A choppy consolidation period in front of us where NVT would keep flashing red for some time... just to resolve in a significant down correction
Either way, the results look very consistent... not even a single time a bull trend has started right after these two factors were in confluence. I'd say it became quite the opposite. Is this time different?
I develop indicators meant to be useful, profitable and good looking.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.