No other season is more open than this to miracles. A crypto Christmas miracle with Bitcoin is possible.
It is possible, however, that the miracle may not be the main premise of holiday movies.
Crypto Santa Claus Rally in Crypto: More Credence
Dozens of Hallmark-style holiday movies include the world “miracle” in their title. It is amazing to think that Santa Claus can visit all the children’s homes in the world within a single night. This shows the kind of optimistic sentiment this holiday season can create.
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Across the cryptocurrency market, investors got the equivalent of coal for Christmas – that is unless a miracle happens. According to Fisher Transform’s technical indicator, BTCUSD 3 day timeframes show that this miracle is more likely than the average.
This technical indicator has only shown such an extreme deviation two other times throughout its history – and when you read at what prices this signal triggered at previously, you won’t help but become more hopeful for a Santa Claus rally over the next several days.
Can a Christmas miracle bring investors joy? Source: BTCUSD on TradingView.com | Source: BTCUSD on TradingView.com
Bitcoin’s Extreme Bottom Signal Returns for Christmas
The Fisher Transform is a technical indicator that was created by John F. Ehlers and, according to Investopedia, “converts prices into a Gaussian normal distribution.” Doing so makes spotting turning points a lot easier. The probability of the signal’s reversal is higher than usual for extreme signals and those that are changing in their direction.
The Fisher Transform is a reliable technical indicator that provides objective analysis. The version of the Fisher Transform pictured above and below is a custom tool designed by Moe_mentum dubbed the iFish Smooth & Divergence, available on a two-week trial basis or $525 for lifetime use.
This signal could be another sign for Bitcoin owners Source: BTCUSD on TradingView.com | Source: BTCUSD on TradingView.com
On 3-day BTCUSD charts, the Fisher Transform is showing a potential reversal through turning around at the -2.0 deviation – a point of extremes reached only two other times prior.
In October 2011, Bitcoin traded at just two dollars per coin. In December 2018, the second occurred at the bottom of bear markets. Three years later, it has reached the top again just as the indicator begins turning around.
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Fisher Transform, which is unbounded in nature, can reverse and go to an extreme or deeper deviation. This would increase the chances of it reversing further. This makes the Fisher Transform a helpful tool for those who trade using a “mean reversion strategy” and attempt to profit from when prices move to unusual extremes.
The price of Bitcoin could fall to another record low if the Fisher Transform is unsuccessful. At that point, a bullish divergence would be possible and another buy signal potentially generated – again improving the chances of a positive outcome.
Investopedia cautions against the possibility that this indicator may be too slow. For example, “asset prices are not normally distributed, therefore attempts to normalize prices could be inherently flawed and may not produce reliable signals.”
The Fisher Transform is still statistically most reliable, though it requires backtesting data. This can be especially true when used with other confirmation tools. These statistics suggest that a Christmas crypto miracle may be possible.
#Bitcoin per D3 — IFS reading one of the historical lows at ( OS) region
Backtests show that the market is bottomed
D3 @( -2 Deviation )👇
-> October 2011 @ $2.15
-> 15 Dec 2018 @ $3135https://t.co/125TAgbVlu
— Moe (@Moe_mentum_) December 23, 2021
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Featured image taken from iStockPhoto. Charts from TradingView.com