Bitcoin has finally flipped the 3-day Supertrend green due to last weeks rally, after over 13 months of red!

Another chapter in the extraordinary achievements, for it probably being a bear markt rally, of last weeks 25% rally has been made and its truly exciting. There is surely a long list of indicators that try to predict the bottom or as in this case try to predict a reversal from downtrend to a possible uptrend. But very few have been so consistent and clear throughout their history as the SUPERTREND, in this case the 3-day SUPERTREND.

The Supertrend is a representation of the volatility in the market. Through several calculation of the average of high, low and closing price and also the Average True Value. Thats all just some complicated background calculation, you just have to know that in a downtrend the trendline is above the price and seen as a major resistance, while in an uptrend it is below the price and seen as major support.

​

Imported from matthewhyland_ on Twitter

For Bitcoin we can clearly see how important this trendline has been, especially in this bear market. This indicator actually pointed towards a bear market very early, when we were above $50k. Since then it has acted as a big resistance as we can see in March 2022 and how we got perfectly rejected there. But now this bounce has put us above it again after 13 long and bloody months.

As it is staying at $17.9k we can also see that we are above it by a very good margin and are making one after the other 3-day candle in green right now. Now this could even further confirm it that we may see a larger move upwards but this indicator, at least on this time-frame is not about bull market or bear market but simply about an uptrend or downtrend.