2024

Parabolic

Hope

Bitcoin

<p>Recently, Bitcoin experienced <a href="https://www.newsbtc.com/bitcoin-news/bitcoin-large-resistance-wall-ahead-level-watch/">a significant drop</a>, crashing 15% from its 2024 highs around $49,000. This decline followed closely on the heels of the approval of 11 spot Bitcoin Exchange-Traded Funds (ETFs), a move that was initially met with optimism in the crypto community. The sudden downturn has left investors and traders analyzing the charts for clues about Bitcoin’s next move.</p> 
<h2 id="is-the-bullish-bitcoin-trend-over">Is The Bullish Bitcoin Trend Over?</h2> 
<p>In the wake of this decline, technical analysis offers a beacon of insight. Notably, the correction was marked by a bearish engulfing candle on the daily chart, signaling a potential reversal in Bitcoin’s upward trend.</p> 
<p>Accompanying this was a nasty wick – a long upper shadow on the candlestick chart, indicating a significant sell-off after prices peaked.</p> 
<p>Further complicating the landscape was the opening of the CME BTC Futures with a sizeable gap down. Such gaps are often viewed as potential resistance levels, reinforcing the bearish sentiment.</p> 
<p><img loading="lazy" decoding="async" class="size-large wp-image-570028 aligncenter" src="https://www.newsbtc.com/wp-content/uploads/2024/01/BTC1_2024-01-17_12-55-31.png?w=860&amp;resize=860%2C504" alt="BTC1!_2024-01-17_12-55-31" width="860" height="504" srcset="https://www.newsbtc.com/wp-content/uploads/2024/01/BTC1_2024-01-17_12-55-31.png?w=4015 4015w, https://www.newsbtc.com/wp-content/uploads/2024/01/BTC1_2024-01-17_12-55-31.png?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/01/BTC1_2024-01-17_12-55-31.png?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/01/BTC1_2024-01-17_12-55-31.png?w=860&amp;resize=860%2C504 860w, https://www.newsbtc.com/wp-content/uploads/2024/01/BTC1_2024-01-17_12-55-31.png?w=1536 1536w, https://www.newsbtc.com/wp-content/uploads/2024/01/BTC1_2024-01-17_12-55-31.png?w=2048 2048w, https://www.newsbtc.com/wp-content/uploads/2024/01/BTC1_2024-01-17_12-55-31.png?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2024/01/BTC1_2024-01-17_12-55-31.png?w=1140 1140w, https://www.newsbtc.com/wp-content/uploads/2024/01/BTC1_2024-01-17_12-55-31.png?w=3000 3000w" sizes="(max-width: 860px) 100vw, 860px" data-recalc-dims="1"></p> 
<h2 id="stop-and-reverse-a-ray-of-hope">Stop And Reverse: A Ray Of Hope</h2> 
<p>However, amidst these seemingly negative signals, a ray of hope shines through from a “parabolic” technical indicator – the <a href="https://www.newsbtc.com/topic/parabolic-sar/">Parabolic SAR</a> (Stop and Reverse).</p> 
<p>Despite the tumultuous market conditions, the weekly BTCUSD Parabolic SAR indicator remains untagged, suggesting that the long-term uptrend is still intact.</p> 
<p>This indicator, known for its effectiveness in identifying potential reversals in the market’s direction, paints a different picture from the immediate bearish signals and sentiment.</p> 
<h2 id="what-is-the-parabolic-sar">What Is The Parabolic SAR?</h2> 
<p>To fully grasp the significance of the <a href="https://www.newsbtc.com/topic/parabolic-sar/">Parabolic SAR</a> in this context, it’s essential to understand what it is and how it functions. The Parabolic SAR is a popular technical analysis tool used primarily to determine the direction of an asset’s momentum and to provide entry and exit points.</p> 
<p>The ‘SAR’ in Parabolic SAR stands for ‘Stop and Reverse.’ This indicator is represented on charts as a series of dots placed either above or below the price bars. A dot placed below the price is viewed as a bullish signal, while a dot above is bearish.</p> 
<p>The unique aspect of the <a href="https://coinchartist.io/parabolic-sar/education/technical-indicators-oscillators/" target="_blank" rel="noopener nofollow">Parabolic SAR</a> is its ability to act as a trailing stop loss. As the price of an asset moves, the Parabolic SAR adjusts, moving closer to the price line. This adjustment provides a dynamic method for traders to manage their positions, securing profits while limiting potential losses.</p> 
<p>In the context of Bitcoin’s current situation, the Parabolic SAR’s position – still below the price bars on the weekly chart – suggests that the long-term bullish trend is not yet disrupted.</p>

Parabolic Bitcoin Indicator Points To Continued Bull Run Despite 15% Crash

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