This cryptic winter was not very long. After hitting $ 34,000 in the second half of January, Bitcoin (BTC) is up again, hitting the $ 45,000 mark on February 10th. Many high coins have also achieved double-digit weekly returns. However, not all emergency rallies were equally impressive. Is there a way for traders to pick the assets that are pulling out the strongest rebounds?
Fortunately, bullish market reversals tend to look similar in terms of both price movement and other variables that shape market activity: rising trading volumes, spikes of internet attention to individual tokens, and the high sense of social media chatter around them. In addition, the conditions underlying the rallies of individual assets in a resurgent crypto market are often repeated as well.
What this means in practice is that automated data-smart tools capable of detecting similarities between past and current trading conditions around cryptocurrencies – such as the VORTECS Score, available to Cointelegraph Markets Pro subscribers – can be especially effective in alerting traders to an urgent price. it stings when the market turns bullish.
The basic principle behind the VORTECS ™ Score is a comparison between the business conditions of the asset now and those in the past. The algorithm is constantly sifting through the annual value of the historical data of each digital asset on price movement, trading volumes and Twitter activity and social sentiment, seeking to identify combinations of these metrics that in the past regularly appeared before huge price pumps.
The result is a score that ranges from 0 to 100. Scores of 80 and above indicate historical outlooks that are bullish for approximately the next 10 to 72 hours. If a coin hits 90 or even higher, it means that the model is very confident that it is observing a pattern that has consistently preceded past pluses.
In a normal week, there will be an average of three to four instances of VORTECS ™ -A score of 90 or higher. But with the recovery of the crypto market, we have seen 10 such cases from the 3rd to the 10th of February. On average, the assets that reached a Score of 90 added 7% of value 24 hours after hitting the threshold of 90-VORTECS ™ and gained 15% after the crypto market. 72 hours. Here are the most impressive cases.
KEEP: Weekly return of + 58.64% after VORTECS ™ -Score of 92
The price of Keep Network’s KEEP token steadily rose in the first half of the week, largely reflecting the overall favorable market trend and going from $ 0.46 on February 5 to $ 0.58 on February 8. in February. Then, all of a sudden, a combination of historical business. conditions around the token began to look extremely bullish, as evidenced by a peak VORTECS ™ -Score of 92 (red circle in the diagram). Nine hours after the maximum score, the price of KEEP has risen, hovering from $ 0.57 to $ 0.76 in 10 hours.
MNW: Weekly return of + 54.63% after VORTECS ™ -Score of 90
MNW, the utility of Morpheus.Network, focused on supply chain management, has had robust fundamentals since mid-January, when the protocol saw a smart contract update and new key nodes integrated into the network. This past week, indications of strong trading conditions preceded both phases of the accumulation of MNW. The more powerful second phase came 12 hours after the asset flashed an ultra-strong historical outlook, reaching a VORTECS ™ Score of 90 on February 6th. A subsequent price pump saw MNW rise from $ 1.33 to $ 1.72.
LEO: Weekly return of + 52.56% after VORTECS ™ -Score of 91
Unus Sed Leo (LEO), an asset linked to Bitfinex cryptocurrency exchange, experienced massive high-level pressure this week when news broke that the U.S. Department of Justice had recovered about 80% of Bitcoin stolen from the platform in a 2016 hack. a sense of the internet discussion clearly shaped what the VORTECS ™ algorithm recognized as extremely favorable trading conditions, marked by a Score of 91, which came to light in the early hours of February 7th. Less than two days later, the price of LEO rose. from under $ 5 to $ 7.53 within hours.
As a famous saying goes, history does not repeat itself, but it often rhymes. Even the most favorable historical precedent is not a guarantee of future price action, but incorporating automated analysis of the past performance data of crypto assets into a business strategy can greatly improve its performance.
Cointelegraph is a publisher of financial information, not an investment advisor. We do not provide personalized or individualized investment advice. Cryptocurrencies are volatile investments and carry a significant risk including the risk of permanent and total loss. Past performance is not indicative of future results. Numbers and diagrams are correct at the time of writing or as otherwise specified. Live-tested strategies are not recommendations. Consult your financial advisor before making financial decisions.