Everybody loves a crypto bull market, but every green wave inevitably gives way to periods of sideways or downward movement.Skilled traders know that these phases of the market cycle can be rife with profit opportunities, too. Anticipating not only a digital asset’s upward price movements, but downturns and corrections can be useful when deciding on when to exit a position and lock in gains, as well helping to add toprofits by shorting crypto assets whose prices decline.In addition to a keen eye and common sense, anticipating price drops can be aided by data intelligence tools. One AI-driven indicator that can help investors see the signs of an upcoming dip early is the VORTECS™ Score, exclusively available to the members of Cointelegraph Markets Pro.Its job is to sift through years’ worth of historical data and identify whether the combination of market and social conditions around each asset looks like those that preceded sharp upward or downward price action in the past.At any given moment, a cryptocurrency token’s high VORTECS™ Score means that its outlook is historically bullish; but low scores below 30 indicate that in the past, the observed patterns were often followed by price drops.Red VORTECS™ Scores are much rarer than dark-green ones. The most common scenario where such scores can be observed is when crypto assets see flash rallies, get overbought, and then see massive corrections.Here are five conspicuous instances of red VORTECS™ Scores flashing on crypto assets before their prices tanked.DOGE: Memecoin gets overheatedVORTECS™ Score (green/red) vs. DOGE price, Apr. 8 – 15. Source: Cointelegraph Markets ProDogecoin (DOGE) presented an instance of very high and very low VORTECS™ Scores following each other closely in the week of Apr. 8.The asset’s score went above 80 on the morning of Apr. 13, when the price curve was still flat at around $0.073 (first red circle). Apparently, the model has sensed a familiar arrangement of celebrity tweets and rising trading volume. Less than 12 hours later, the price line followed suit, pumping all the way to $0.141.Even before the price reached its peak value, however, the algorithm signaled that historically Dogecoin’s rallies were followed by rebounds, as the VORTECS™ Score dipped into the red area below 30. A correction to $0.110 followed in several hours.While the VORTECS™ Score is not designed to tell investors when to go long or short, it can provide a useful indication of historically bullish or bearish conditions for a particular asset — information that can be profitably incorporated into a trading strategy.COTI: Massive spike, hard comedownVORTECS™ Score (green/red) vs. COTI price, Aug. 21 – 27. Source: Cointelegraph Markets ProFollowing a sharp hike from $0.29 to $0.45 within an hour that occurred on Aug. 26, the price of COTI began to succumb to a correction.It quickly dropped to $0.37 and then attempted to gain upside traction again as it rose to $0.42. At this point, the VORTECS™ algorithm recognized similarities between the observed conditions and COTI’s past price corrections, lighting up a red score (red circle in the graph) when the price was still on its way up. The flash was well-placed, within two hours, COTI reversed its course and fell back to around $0.35.NEAR: A dip or second leg up?VORTECS™ Score (green/red) vs. NEAR price, Sept. 5 – 12. Source: Cointelegraph Markets ProBetween Sept. 7 and 9, NEAR Protocol soared from $6.00 to $11.58 within three days. The question on all crypto traders’ minds was: Where will NEAR go next? Several hours after the price peak, the token’s VORTECS™ Score dipped below 30 (red circle in the graph), informing Markets Pro subscribers that historical precedent suggested an imminent decline rather than another leg of the rally.NEAR’s price was at around $11.00 and still going up when its score flashed red; 36 hours later, it was down to $9.00NMR: Red Score at a price peakVORTECS™ Score (green/red) vs. NMR price, Apr. 2 – 8. Source: Cointelegraph Markets ProNumeraire (NMR) was doing great on April 4 and 5, and its price was still headed toward the peak of $78.07 when its VORTECS™ Score dropped below 30 (red circle in the graph). This suggested that in the past NMR’s similar rallies were followed by the price cooling off quickly. Sure enough, the correction kicked in in less than two hours after the lowest Score, NMR’s price sliding back to around $63.00 within the following two days.STX: Green before price rises, red before it dropsVORTECS™ Score (green/red) vs. STX price, Oct. 7 – 14. Source: Cointelegraph Markets ProIn the week of Oct. 8, Stacks (STX) managed to light up both an ultra-low and ultra-high VORTECS™ Scores, all within two consecutive days. On Oct. 9-11, STX had seen a strong rally from $1.44 to $2.29, after which the token’s price began to decline.At that point, the VORTECS™ algorithm recognized a combination of factors that in the past preceded extended corrections, flashing a red score (first circle in the chart). Indeed, STX soon embarked on a downward trajectory for the following 30 hours, dipping all the way back to $1.86.However, in the middle of the pullback, the coin’s VORTECS™ Score went up sharply, reaching a high of 88 against a still-declining price. Apparently, market and social conditions around the coin flipped bullish again as in the past similar massive corrections were followed by even greater upsides.Sure enough, 16 hours after the peak VORTECS™ Score of the week had been registered, STX’s rally resumed toward the week’s high price at $2.39.Cointelegraph Markets Pro’s VORTECS™ Score is available to members here.Disclaimer. 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 advisor before making financial decisions.Čítaj viac
Why do crypto traders “buy the rumor, sell the news”?Simple. Because whispers of exchange listings or big-name partnerships reach very few people… while an article in Cointelegraph can reach hundreds of thousands of crypto enthusiasts in seconds. While insiders are quietly amassing tokens on rumors, the rest of us are completely ignorant of what may be coming.But with rumors, there are no guarantees. Which can lead to disappointment and serious loss of investment for those traders who gamble that they’re true… and end up wrong.So how can you possibly compete with thousands of other market participants when important news actually breaks? You’d have to be one of the very first to know in order to catch the price before it spikes.Look at the examples below — the time between a closely-guarded announcement and a massive price spike of 144% can be just a few minutes!NewsQuakes™ on the Cointelegraph Markets Pro data intelligence platform allow you to completely outsource monitoring the crypto news space to AI. The machine learning algorithm automatically combs through thousands of relevant sources and instantly alerts members via mobile notifications when potential market-moving events are detected.NewsQuake™ announcements are snapped from primary sources such as exchange websites, Medium posts, or projects’ Twitter accounts, meaning that traders don’t have to wait for the media or their favorite influencers to turn raw information into a story.Extensive research has identified three types of news — exchange listings, staking, and partnership announcements — that are most likely to spark strong rallies.Here are 5 stories that alerted traders to massive profit opportunities in 2021… and a few dramatic illustrations of how NewsQuakes™ tipped off Markets Pro members.WAX (WAXP): +144% in 2 hoursWAXP price following Cointelegraph Markets Pro NewsQuake™Exchange listings reliably boost crypto prices, especially when it is a small or medium-cap coin being listed on a major exchange.On Aug. 23, before the news of WAXP’s listing on Binance came in, the token was trading at 18 cents. In two hours from the announcement, WAX’s price soared to reach 44 cents. In this situation, getting the news quickly was key. As can be seen in the chart, the NewsQuake™ alert (red circle) came in just before WAX’s price exploded.Decentraland (MANA): 111% in 96 hoursMANA price following Cointelegraph Markets Pro NewsQuake™It is now hard to believe that in March 2021, long before Facebook’s rebranding into Meta and the associated hype around the group of assets now widely known as metaverse tokens, MANA was trading at just $0.55. On March 12, the announcement of OKEx enabling margin trading for the asset got crypto investors stoked, and sparked a long rally that saw MANA go from $0.55 to $1.16 over the next four days. The earlier traders were in buying the NewsQuake™, the more profit they could have secured for themselves…Polygon (MATIC): +90% in 50 hoursMATIC price following Cointelegraph Markets Pro NewsQuake™On Feb. 23, in the middle of a cool-off that followed the first leg of the week’s big rally, the announcement of MATIC’s debut on Binance Staking gave the asset a powerful second wind. (The red circle indicates the Markets Pro NewsQuake™.) The resulting hike propelled the coin from $0.11 to its then-all-time high at over $0.21, an increase of 90%. Today, this can seem minor in the light of the token’s year-to-year return on investment of more than 11,000%, but on that day, traders were surely content with MATIC’s price “only” nearly doubling.VeChain (VET): +46% in 52 hoursVET price following Cointelegraph Markets Pro NewsQuake™A great example of impactful partnership news is VeChain’s announcement of its collaboration with the accounting firm PricewaterhouseCoopers that came up on Apr. 12. It was not a huge surprise that the news of the enterprise-oriented blockchain project getting access to the client base of one of the Big Four firms pushed the token’s price 46% up over the fours of two days.In this case, the NewsQuake™ from Markets Pro arrived significantly before the major rally.Amp (AMP): +42% in one hourAMP price following Cointelegraph Markets Pro NewsQuake™On Nov. 23, a post on Binance’s Twitter account announced that digital collateral token AMP was slated to be listed on the exchange platform. Markets Pro users received their near-instant NewsQuake™ alerts within seconds. It was a very clean breakout: Apparently, no-one front-ran the news, and the token’s price soared immediately following the public announcement, shooting up almost vertically from $0.050 to $0.071 in just an hour – a gain of 42%.Timing was key here, and those Cointelegraph Markets Pro members who got the news early thanks to the NewsQuake™ alert found themselves ahead of the pack.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 advisor before making financial decisions.Čítaj viac
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