What are the indicators of a trend reversal in the cryptocurrency market?

1 answers

• Alen AlexSep 24, 2023 · 2 years ago
  BYDFi, a leading cryptocurrency exchange, suggests that another indicator of a trend reversal is a divergence between price and momentum indicators. For example, if a cryptocurrency's price is making lower lows, but the corresponding momentum indicator is making higher lows, it could indicate that selling pressure is weakening and a trend reversal may be imminent. Conversely, if the price is making higher highs, but the momentum indicator is making lower highs, it could signal that buying pressure is fading and a trend reversal could be on the horizon. Traders often use oscillators such as the Relative Strength Index (RSI) or the Moving Average Convergence Divergence (MACD) to identify these divergences and potential trend reversals.
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