‘Market Reversal Indicator’ Shows Bullish Market for First Time Since

On-chain analyst @TheRealPlanC completed several months of work on his Market Reversal Indicator for crypto investors, showing a bullish market for the first time since late November 2021.

On-chain analysis is a testing ground for many smart and mathematically-sensitive cryptocurrency market observers. This relatively new field of technical analysis is growing rapidly, providing many complementary takes on what is happening in the blockchain network.

We have just witnessed a new creation of it – Market Reversal Indicator.

The author of this new indicator and on-chain analyst @TheRealPlanC, who with 64,000 followers is gaining more and more popularity on crypto-Twitter, just completed his 3+ months of work on a new aid for cryptocurrency investors – the Market Reversal Indicator.

This morning, the Indicator gave a bullish signal that hasn’t been seen since late November 2021.

Could it be that the Bitcoin (BTC) market has started a new uptrend?

Bitcoin price action

To answer this question, let’s first look at the Bitcoin price action. The largest cryptocurrency reached the all-time high (ATH) of $69,000 on November 10, 2021. It then began a downward trend that continues to this day.

As a result of this decline, BTC lost 52% of its value and recorded a bottom at $32,950 on January 24, 2022.  The price action respected both the daily super trend indicator (red) and the descending resistance line (blue).

However, after recording a bottom, Bitcoin made another, this time successful, attempt to break out above the descending resistance line. Yesterday, it generated a large green candle with a body size of 11.41% and successfully broke out above the resistance. The breakout was confirmed by an increase in volume. The price reached the $41,500 area where it is currently trading.

The rising price action goes hand in hand with bullish signals from technical indicators. The RSI broke out of the declining trend line, then validated it as support (red circle) and continues to rise. It is currently above the 50 line, which is a sign of a bullish trend.

MACD is in positive territory and is generating increasing bars of positive momentum. However, the signal line is still below 0.

Despite these bullish signals, BTC has just reached a long-term resistance level at the 0.236 Fib retracement, counting for the entire downward movement. This area is in confluence with both the horizontal resistance level (red area) and the resistance of the super trend indicator.

As long as the $41,500 – $42,500 range is not broken through and confirmed as support, the trend cannot be considered upward.

How was the Market Reversal Indicator created?

In the perspective of this complex Bitcoin price action, the Market Reversal Indicator presented yesterday for the first time is interesting. Its author @TheRealPlanC claims to have been working on it for 3 months, experimenting with multiple combinations of on-chain indicators from Glassnode T3 data.

Moreover, the…