Here’s how traders learned about this week’s major market rallies

Cryptocurrency traders can use data from the past to make more money when the market turns bullish again.

This crypto winter didn’t last very long, but it was still very cold. Bitcoin (BTC) briefly hit $34,000 in the second half of January, but now it’s on its way up again. On Feb. 10, it hit the $45,000 mark. Many altcoins have also caught up and are posting double-digit weekly gains. However, not all relief rallies were the same. People who trade in stocks and other things might be able to figure out which assets are going to rebound the best.

Fortunately, bullish market reversals tend to look the same in terms of both price movement and other factors that affect market activity: rising trading volumes, spikes in online attention to individual tokens, and the positive sentiment of social media chatter about them all tend to happen at the same time in the same way. In addition, the conditions that lead to the rise of individual assets in a rising crypto market often happen again.

An automated data intelligence tool that can look for similarities between trading conditions for crypto assets in the past and in the present. These tools can be very effective at alerting traders to price spikes when the market turns bullish.

Bullish confidence

When the VORTECSTM Score is calculated, it looks at how well a certain thing has been doing in the past and how it has been doing now. Each digital asset’s price movements, trading volumes, and Twitter activity and social sentiment are looked at by the algorithm all the time. It is looking for patterns that have been seen before big price rises in the past.

0 to 100 is the score. Scores of 80 and above show that historical outlooks are bullish for the next 10 to 72 hours, at least. If a coin hits 90 or even more, it means that the model is very sure that it sees a pattern that has led to previous gains.

Three to four times a week, a VORTECSTM Score of 90 or above will happen. That’s not true, though. We saw 10 such cases from Feb. 3 to 10. It usually took 24 hours for the assets with a score of 90 to add 7% of their value, and 72 hours for the value to rise 15%. Here are the best examples.

KEEP: A weekly return of +58.64% after a VORTECS™ Score of 92

On Feb. 5, Keep Network’s KEEP token was worth about $0.46. On Feb. 8, it was worth about $0.58. This was mostly because the market was going up, and the price of Keep Network’s KEEP token was going up, too. History of trading conditions for the token suddenly looked very positive, as shown by a VORTECSTM Score of 92 at a high point in the past (red circle in the chart). KEEP’s price went from $0.57 to $0.76 in 10 hours after the peak Score.

MNW: A weekly return of +54.63% after a VORTECS™ Score of 90

As of mid-January, MNW, the utility token of supply chain management-focused Morpheus.Network, has strong fundamentals. This is because the protocol had a smart contract upgrade and new masternodes were added to the network. This week, there were signs that trading was going well before both of MNW’s rises. On Feb. 6, the asset had a VORTECSTM score of 90, which means it had a very strong history. The second phase came 12 hours later. Another price rise saw MNW go from $1.33 to $1.72.

LEO: A weekly return of +52.56% after a VORTECS™ Score of 91

Unus Sed Leo (LEO), an asset linked to the Bitfinex crypto exchange, saw huge gains this week after news broke that the US Department of Justice had reclaimed about 80% of the Bitcoin stolen from the platform in a hack in 2016. This was a huge boost for the asset. The volume and tone of the online discussion have clearly shaped what the VORTECSTM algorithm thought were very good trading conditions, which were marked by a score of 91 that lit up in the early hours of Feb. 7. Less than two days later, the price of LEO went from below $5 to $7.53 in a few hours.

As a well-known saying goes, history doesn’t repeat itself, but it does often make sense. Even the best historical precedent isn’t a guarantee of what will happen in the future. Putting automated analysis of crypto assets’ past performance data into a trading strategy can make it a lot better.

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

Leave a Comment

Your email address will not be published. Required fields are marked *


Recent Posts

Follow Us