Just as it started to look like the crypto market was staging a comeback and bracing for a new bull run, geopolitical tensions stepped in to drive the price of Bitcoin (BTC) below $40,000 again, with most altcoins seeing deep red as well. Such periods of market uncertainty, however, are not unprecedented, and digital assets’ individual history already holds information on the way their prices previously behaved under similar macro conditions.
Last week was not rich with impressive altcoin rallies, as the crypto market seesawed along with the twists and turns of the news cycle. Still, several assets that recorded solid price performances did so after showing off strong historical trading conditions. Here is how crypto traders could have detected these favorable outlooks and put them to use.
Detecting history’s rhymes
The VORTECS™ Score is an automated data intelligence tool, exclusively available to the subscribers of Cointelegraph Markets Pro, designed to spot assets’ individual conditions that in the past consistently appeared before big rallies. It looks at a menu of inputs — trading volume, price movement, tweet sentiment and others — and constantly compares their current combination to the asset’s historical performance data.
The more the algorithm is confident that the outlook is historically bullish, the higher the token’s VORTECS™ Score at any given moment. Scores of 80 and above appear when the model has strong confidence that the arrangement of data points looks very similar to those in the past that came in 12 to 72 hours before price spikes.
Of course, individual data patterns are to some extent correlated to the price of Bitcoin and the trends in the broader market; the rest of the variance, however, is unique to each token, providing useful information on the way a particular asset tends to behave under similar marketwide conditions.
Here’s how it played out last week with Telos’s TLOS, Unifi Protocol’s UNFI and Avalanche’s AVAX.
TLOS: Anticipating a second leg up
On Feb. 15, the token appreciated from $0.92 to $1.06 in 16 hours, after which its price hung in the balance. At this point, TLOS’ historical trading outlook began to look increasingly favorable. A VORTECS™ Score of 81 suggested that in the past, similar combinations of price movement and other trading and social conditions were often followed by further upside. This time, it happened again: After a five-hour pause, TLOS resumed its rally, rising all the way to $1.21.
UNFI: Robust outlook foreshadowing a long rally
AVAX: Heads-up to an incoming price peak
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More than a year’s worth of data suggests that focusing on tokens that hit the VORTECS™ Score of 80 and beyond is an efficient strategy for identifying a range of assets with a solid chance of performing well within the next few days. This automated historical analysis yields the greatest results when combined with other analytical tools and strategies, such as various forms of technical analysis. While it is not a guarantee of future price movement, the VORTECS™ Score has proved to be a useful tool for asset discovery and detecting the early signs of impending rallies.
Cointelegraph is a publisher of financial information, not an investment adviser. We do not provide personalized or individualized investment advice. Cryptocurrencies are volatile investments and carry significant risk including the risk of permanent and total loss. Past performance is not indicative of future results. Figures and charts are correct at the time of writing or as otherwise specified. Live-tested strategies are not recommendations. Consult your financial adviser before making financial decisions.
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