There are several NVT indicators/charts you can find online, but I find this one as one of the best out there to spot market sentiment, buy/sell zones.
Simply put, green zones cover heavy capitulation 'oversold' conditions and hence offer a great risk : reward ratio. You'd be surprised how profitable a simple strategy like this can be. The only thing you need is patience and consistency, which is not as easy as it sounds when there's a high volume of news and events (noise) in the crypto industry. That said - please, always back test and don't trust strangers w/o doing your due diligence.
Now back to the current chart - the move is getting very overextended and the least I expect soon is a relief bounce. Capitulation event is not out of the question, but I am skeptical we will break below the 28,500$ bottom of June 2021. Why do I think the 28,500$ holds? A multitude of on-chain and TA indicators that point towards a heavy flat accumulation (30,000-60,000$) more than a trend reversal.
Simply put, green zones cover heavy capitulation 'oversold' conditions and hence offer a great risk : reward ratio. You'd be surprised how profitable a simple strategy like this can be. The only thing you need is patience and consistency, which is not as easy as it sounds when there's a high volume of news and events (noise) in the crypto industry. That said - please, always back test and don't trust strangers w/o doing your due diligence.
Now back to the current chart - the move is getting very overextended and the least I expect soon is a relief bounce. Capitulation event is not out of the question, but I am skeptical we will break below the 28,500$ bottom of June 2021. Why do I think the 28,500$ holds? A multitude of on-chain and TA indicators that point towards a heavy flat accumulation (30,000-60,000$) more than a trend reversal.
Trade closed: target reached:
Capitulation event! These happen few and far in between as seen on the chart. Based on data, that's a very good entry level.