Bitfinex Flags Bullish Bitcoin Price Signal on Weekly Super Trend Chart

Bitfinex: Super Trend Index Turns Positive, Bullish News for Bitcoin Prices

While bitcoin has behaved erratically during the last week, with volatility claiming hundreds of millions in liquidations, Bitfinex analysts believe that bitcoin prices might continue to rise in the short term.

The key to this analysis is Super Trend, an indicator that has given the first signs of a bullish market for bitcoin, which has been correlated to gold after Treasury Secretary Scott Bessent announced that the U.S. Treasury would double its long-end buybacks from September 9 through November 4.

“BTC has flipped its weekly Super Trend bullish for the first time in months. Super Trend flips sides when the trend changes, and this is the first bullish turn on the weekly since the downtrend set in. A close above the line confirms it,” the exchange pointed out on social media.

Bitfinex refers to Super Trend as “one of the cleanest trend-following indicators in technical analysis,” explaining that it is built on volatility numbers coming from Average True Range (ATR), which was developed by John Welles Wilder Jr., who also created the Relative Strength Index (RSI), Average Directional Index, and the Parabolic SAR indicators.

If the indicator remains above the price line, it means sellers are in control, and the price is in a downtrend. Nonetheless, if the indicator line remains below the price, as it has closed on the weekly chart, it means the price is trending up, with buyers in control.

Bitfinex analysts stressed that Super Trend flipping bullish on the weekly timeframe can be a signal to enter long positions and use its value as a trailing stop. “As bitcoin rises, the line follows it higher. If price closes below the line and Super Trend flips bearish, that can be a signal to exit the long,” Bitfinex concluded.