Have you ever wondered if there is a way to know when Bitcoin's price peaks and then starts to retrace?
A bull-run has historically always culminated in a price explosion, after which a period of decline called the bear market was triggered. Today I present to you an indicator that aims to be able to uniquely establish when BTC will reach its peak for this market cycle.
Who needs to know when the price hits the top?
As we all know, Bitcoin investors are basically of two types: short-term (speculators) and long-term (hodlers). The former need to be able to guess the highs and lows of the price to buy and sell at a profit. The latter, on the other hand, do not care in the least. Therefore, if you are a hodler you do not need to read more, but if you are part of the category of traders what follows can be very interesting for you.
C.B.B.I.
The indicator we're going to get to know today is called ColinTalksCrypto Bitcoin Bull-run Index (CBBI). It is a compound indicator, which uses different and advanced indices to help us determine where we are in the Bitcoin Bull-run. Specifically, 12 indicators are combined to get to provide an integer ranging from 1 to 100 and the higher this number, the closer you are to the top. The indices that make up this tool are of various kinds and among these we find, for example, the Bitcoin Golden Ratio, "Bitcoin" searh term (Google) and even the 2 Year Mooving Average.
Graphically, when compared to the price of the BTC asset, the indicator reacts to the top or bottom values of the price. In December 2017, for example, when the price hit $19400 (all time high for the period), the CBBI hit a value of 99. If a hypothetical investor had sold following this signal, he would certainly have made the maximum profit for that period.
You can check the daily estimate of the indicator from HERE.
Disclaimer
The CBBI is a relatively "new" indicator, it has been back-tested and, although it has given excellent results, the analysis it provides is in fact a forecast and should be taken as such. In fact, I remember that it is not possible to know in advance how the market will go, therefore it should be understood as a tool to accompany the analysis based on reasoned study.
Not a financial advice.
DYOR before investing.
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L.
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