Bitfinex analysts have identified a bullish technical signal in bitcoin's price action, marking a significant development after an extended period of downward pressure.
The exchange noted that bitcoin's weekly Super Trend indicator has flipped bullish for the first time in months. According to Bitfinex, this represents the first bullish turn on the weekly timeframe since the downtrend began, and a close above the indicator line would confirm the shift.
How the Indicator Works
Bitfinex describes Super Trend as one of the cleanest trend-following indicators in technical analysis. The indicator is constructed using volatility measurements from the Average True Range (ATR), a metric developed by John Welles Wilder Jr., who also created the Relative Strength Index (RSI), Average Directional Index, and Parabolic SAR.
When the Super Trend line remains above the price, it signals that sellers control the market and prices are in a downtrend. Conversely, when the indicator line remains below the price—as it has on the weekly chart—it indicates that buyers are in control and prices are trending upward.
Trading Signals
Bitfinex analysts suggested that a bullish flip in Super Trend on the weekly timeframe can serve as a signal for traders to enter long positions, using the indicator's value as a trailing stop. If the price closes below the line and Super Trend flips bearish, that would signal an exit from the long position.
The timing of this technical shift coincides with bitcoin aligning with gold after U.S. Treasury Secretary Scott Bessent announced that the Treasury would double its long-end buybacks from September 9 through November 4.
