THELOGICALINDIAN - Top banking bazaar analysts generally alive and die by the mantra that aggregate consistently precedes amount and the aforementioned is accurate for crypto assets like Bitcoin and the blow of the altcoin market
An indicator advised to atom aboriginal changes in aggregate may be signaling that although altcoins are ambulatory beyond the greater crypto market, a hasty blast may anon bolt crypto investors off guard.
Understanding On-Balance Volume: The Smart Money Indicator
The abstraction was primarily affected by bazaar analyst and columnist Joe Granville, in his 1970s book advantaged New Strategy of Daily Stock Bazaar Timing for Maximum Profit.
In the acknowledged book, Granville explained that assets don’t acceleration in amount until appeal exceeds accumulation and that appeal is abstinent and aggregate – “thus aggregate charge announce price.”
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This was so important to Granville’s bazaar analysis, he after developed a apparatus and abstruse assay indicator alleged “On-Balance Volume.”
The indicator – generally alleged the “smart money indicator” – is advised to atom aboriginal fluctuations in aggregate that can advice adumbrate amount movements abundant eventually than with added indicators.
Some indicators are advised backward indicators, such as the MACD, alone accouterment signals afterwards the fact. But the OBV indicator is a arch indicator that gives signals early.
It makes demography activity on such signals riskier, however, the apparatus does assignment with air-conditioned accuracy.
Altcoin Market Could Be Signalling a Major Selloff Ahead as Whales Prepare to Dump
In the aloft blueprint of the absolute altcoin market cap, OBV can be apparent ascent advanced of the blemish of declivity resistance, which suggests that “smart money” was demography a position afore the blemish occurred.
The blemish on the OBV occurred in backward December, consistent in an uptrend on the indicator. Later, in mid-January, amount followed aggregate and bankrupt through declivity resistance.
And aloof as the adage goes, aggregate preceded the closing amount access that led the altcoin bazaar to assemblage over 50% in beneath than 30 days.
However, that aforementioned apparatus may be now signaling that “smart money” – either aerial abundance whales or institutional investors – may be auctioning altcoins on retail investors affairs the blemish in apprehension of added upside.
Related Reading | Altcoin Market Following Early Bitcoin Path Could Lead to Life-Changing Wealth
Instead, the OBV indicator may be signaling that the assemblage has ended, and administration is demography place. OBV has foretold a abysmal bead may be advanced now that the indicator is in addition downtrend, and shows a abrogating alternation with the better FOMO candle on the altcoin chart.
If the aboriginal arresting of the assemblage is any indication, the aboriginal arresting that a selloff is about to abruptness crypto investors cannot be ignored.
