Bitcoin: Hodlers VS Cruisers VS TradersAnother very outside-the-box trend that I discovered while going down an INTOTHEBLOCK rabbit hole was the Holders' Composition by Time Held leading into the parabolic phase. These CRYPTOCAP:BTC Coin balances are a metric powered by INTOTHEBLOCK that shows ownership distribution over time.
What is a Hodler Balance?
They are address balances that have held CRYPTOCAP:BTC over a period of one year or longer. These are long-term investors. An increase in this metric shows long-term bullish sentiment.
What is a Cruiser?
They are address balances that have held CRYPTOCAP:BTC over a period of one - twelve months. These addresses are what we would consider swing traders. The transfer from Cruiser balance to Trader balance can be seen as bearish sentiment and the transfer from Trader to Cruiser can been seen as bullish sentiment.
What is a Trader?
They are address balances that have held CRYPTOCAP:BTC less than one month. These are short term balances of day traders, bot trading, etc. An increase in this metric would indicate volatility and a potential bearish sentiment in the market.
With that being said about the Trader Balance, on 10/22/20 we can see a (+6%) uptick in Trader balances and a (-2%) down in Cruiser Balances showing investors taking profits and trading into the volatility.
On 4/20/24, the Trader Balance crossed the Cruiser Balance solidifying this accumulation period.
They started closing in on each other at the end of July, Post-Bitcoin Conference w/Trump speech + JPY reverse-carry trade unwinding + Mega Tech FC. Now they have returned the their early July numbers.
KEY TAKEAWAY:
You will see a flow into TRADERSBALANCE, out of CRUISERSBALANCE AND HODLERSBALANCE when the market has officially accepted we have entered the parabolic phase of this bull cycle.
Look for a flow change and TRADERSBALANCE | CRUISERBALANCE cross between 10/8 & 10/22.
Parabolictrend
📉 Falling Wedge Alert on $BTC! Parabolic Trend Holds Key! 💹🚀Hey traders! Today, I want to share an exciting chart pattern I've identified on CRYPTOCAP:BTC (Bitcoin). Let's dive into the falling wedge pattern while considering the significance of holding the parabolic trend. 📊💡
Pattern: Falling Wedge 📉🔽
Symbol: CRYPTOCAP:BTC 💰
Overview:
A falling wedge is a bullish chart pattern characterized by converging trendlines, with the upper trendline sloping downward and the lower trendline sloping upward. When combined with holding the parabolic trend, it could indicate a potential reversal and continuation of the upward trend. Let's explore the falling wedge pattern on CRYPTOCAP:BTC in more detail. ⚡💹
Key Features of the Falling Wedge on CRYPTOCAP:BTC :
Converging Trendlines: Observe how the upper trendline connects the lower highs, while the lower trendline connects the higher lows. This pattern suggests a potential shift in market sentiment. 📈📉
Parabolic Trend Support: Pay attention to the fact that CRYPTOCAP:BTC is holding the parabolic trend, indicating a strong bullish bias. This support adds weight to the potential reversal signal. 🚀📈
Breakout Expectations:
A falling wedge pattern often precedes a bullish breakout. Traders typically anticipate a decisive move above the upper trendline for confirmation. It's important to wait for a clear breakout before considering any trades. 🚀📈
Trading Strategy:
Entry Point: Consider entering a long position once CRYPTOCAP:BTC convincingly breaks above the upper trendline of the falling wedge pattern, supported by the parabolic trend. This breakout may suggest a potential trend reversal and continuation of the upward momentum. ⬆️💰
Stop-Loss: Set a stop-loss order below the lower trendline to manage risk and protect against potential downside. ⛔️📉
Target Levels: Identify key resistance levels or previous swing highs as profit targets. Adjust your position size and take profits accordingly. 🎯📈
Risk Management:
Remember to implement proper risk management techniques, including position sizing, stop-loss orders, and adherence to your trading plan. It is crucial to carefully manage your risk exposure while trading CRYPTOCAP:BTC or any other cryptocurrency. ⚠️💼💡
Disclaimer: Trading cryptocurrencies carries risks, and it is important to conduct your own analysis and seek professional advice before making any investment decisions.
#FallingWedge #Bitcoin #BTC #Cryptocurrency #TechnicalAnalysis #TradingStrategy #ParabolicTrend #BullishReversal #RiskManagement
In conclusion, the falling wedge pattern identified on CRYPTOCAP:BTC , along with holding the parabolic trend, suggests a potential bullish reversal. However, exercise caution and wait for a confirmed breakout before making any trading decisions. Stay tuned for further updates on $BTC! 💹🚀
(Note: This post is for informational purposes only and should not be considered as financial advice.) 💡💼📚
The Anatomy of a Parabolic TrendIn this educational idea I will explain the characteristics of a Curved Parabolic Trend using the chart of BNB:USDT (Binance Coin: US Dollar Token).
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What is a parabolic curve in a uptrend?
The parabolic curve chart pattern is one of the strongest uptrend patterns a financial asset can have. This type of pattern moves upwards at the fastest and furthest rate of any chart pattern. Each retracement or consolidation is quickly bought up by eager investors as more and more money flows into the market due to excitement.
The parabolic curve is named after the parabola, because the ascending curving trend line used to identify the potential support area looks like a parabola:
en.wikipedia.org
In a Bullish Market Parabolic Trends can often form the smaller timeframe trends making up larger timeframe swings. This pattern creates short term price range bases which are Reaccumulation Phases as described below. These accumulation ranges can form multiple times as it the price keeps going higher.
The price action pattern that creates the parabolic curve looks like a staircase. This pattern can last for weeks or months. The maximum point of financial risk comes in at the end of the formation after the final movement is negated and the price fails to hold the obvious Curved Structure. This usually ends in a price plunge that falls even faster than the price rose initially.
These patterns generally occur on financial assets that are market leaders or up and coming and emerging technologies or products in its sector. One important thing to note when identifying a Parabolic Trend is that the price may go much further then people anticipate leading to sellers rebuying their asset they sold initially due to "FOMO" Fear Of Missing Out, leading to the price to "Stair Step" higher and higher as more and more sellers are squeezed out of the Market, until eventually they regain control and the trend is lost.
The key in trading a parabolic trend is to treat it like a investment, identifying the trend and buying early, capturing as much of the move to the upside as possible until the trend is finally over.
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See idea linked below: "Market Cycles & Phases" to understand the topic of trend further.