Bitcoin price is above $60,000 and bears are in disbelief. But they shouldn’t be, as bulls have long been in control of the trend. It had only been lower timeframes that had flipped bearish, while the most dominant trend had remained up. According to the Supertrend, all of the most important timeframes have since flipped bullish, with buy signals appearing across the board.

Here is a closer look at what the tool says, the only remaining timeframe without a buy signal, and more information on what the Supertrend technical indicator does.

When Bitcoin and other cryptocurrencies are trending, they move fast and hard. During uptrends, coins post tens to hundreds of thousand percent rallies. Downtrends then wipe out 99% of that progress. The cycle then repeats and it happens all over again.

Trends take place across multiple timeframes. For example, a short-term downtrend on daily timeframes might last weeks, while a monthly downtrend could take years to turn around. The same is true for the opposite direction, which is what bears missed this time around.

Related Reading | How 90-Year Old Market Wizardry Predicted The Bitcoin Breakout

Bitcoin price flipped bearish on daily and even weekly timeframes, but failed to flip fully bearish on the monthly timeframe. That is at least according to a technical indicator called the Supertrend, which gives fairly straightforward buy and sell signals.

On monthly timeframes, Bitcoin never fell bearish, and has recently flipped back bullish on the daily and weekly timeframe.

According to eLearnMarkets, the Supertrend is a trend following indicator “similar to moving averages.” It is plotted along with price action, using only a period and a multiplier for its calculation.

“When we construct the Supertrend indicator strategy, the default parameters are 10 for Average True Range (ATR) and 3 for its multiplier. The average true range (ATR) plays a key role in ‘Supertrend’ as the indicator uses ATR to compute its value and it signals the degree of price volatility,” the site description reads.

Essentially, the tool projects a moving average-like line based on the Average True Range, when which broken, issues a buy or sell signal depending on the direction.

Buy signals have been issued on daily, weekly and monthly as pictured at the top of the article, but the chart directly above here shows that the two-week timeframe has yet to be penetrated, leaving one more box for BTC to check before new highs are guaranteed.

Related Reading | Bitcoin Price Prepares To Blast Off Back Into RSI “Bull Zone”

The fact buy signals are only just triggering as Bitcoin is hitting former resistance and what was supposed to be the bull market “top” is probably the best proof yet that what happened in April 2021 was no cycle peak.

As for what price that might happen yet, we’ll be watching the Supertrend closely for when the next sell signal triggers.

Follow @TonySpilotroBTC on Twitter or join the TonyTradesBTC Telegram for exclusive daily market insights and technical analysis education. Please note: Content is educational and should not be considered investment advice.

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