Here’s how traders were alerted to some of this week’s biggest rallies in the resurgent market

This crypto winter has not been very long. After briefly touching $34,000 in the second half of January, Bitcoin (BTC) is on the rise again, hitting the $45,000 mark on February 10. Many altcoins also caught up and posted double-digit weekly returns. However, not all relief rallies were so impressive. Is there a way for traders to choose which assets are about to make the strongest rallies?

Fortunately, market-wide bullish reversals tend to resemble each other in terms of price movement and other variables that shape market activity: increased trading volumes, spikes in online attention for tokens individuals and a high sense of social media chatter around them. Additionally, the conditions that underpin individual asset rallies in a booming crypto market often recur as well.

In practice, this means that automated data intelligence tools capable of detecting similarities between past and present trading conditions around crypto assets – such as the VORTECS™ score, available to Cointelegraph Markets Pro subscribers – can be particularly effective in alerting traders to impending price. spikes when the market returns to the upside.

Bullish Confidence

The basic principle of the VORTECS™ score is a comparison between the current trading conditions of the asset and those of the past. The algorithm constantly sifts through each digital asset’s years of historical data on price action, trading volumes, Twitter activity and social sentiment, seeking to identify combinations of these metrics that in the past , appeared regularly before huge price pumps.

The result is a score between 0 and 100. Scores of 80 and above indicate a bullish historical outlook for the next 10 to 72 hours or so. If a coin reaches 90 or rises even higher, it means that the pattern is very confident that it is observing a pattern that has always preceded past bulls.

In a normal week, there will be an average of three to four instances of a VORTECS™ score of 90 or higher. But with the recovery of the crypto market, we saw 10 such cases from February 3 to 10. On average, assets that scored 90 added 7% in value 24 hours after reaching the 90-VORTECS™ threshold and gained 15% after 72 hours. Here are the most impressive cases.

SAVE: a weekly return of +58.64% after a VORTECS™ score of 92

VORTECS™ score (green/grey) vs. KEEP price, February 3-10. Source: Cointelegraph Markets Pro

The price of Keep Network’s KEEP token had risen steadily during the first half of the week, largely mirroring the overall favorable market trend and rising from $0.46 on February 5 to $0.58 on February 8. Then, all of a sudden, a combination of historical trading conditions around the token started looking extremely bullish, as evidenced by a VORTECS™ Score spike of 92 (red circle in the chart). Nine hours after the Score peak, KEEP’s price skyrocketed from $0.57 to $0.76 within 10 hours.

MNW: A weekly return of +54.63% after a VORTECS™ score of 90

VORTECS™ score (green/grey) vs. MNW price, Feb 3-10. Source: Cointelegraph Markets Pro

MNW, Morpheus.Network’s utility token, focused on supply chain management, has had strong fundamentals since mid-January, when the protocol saw a smart contract upgrade and new masternodes integrated into the network. . Last week, indications of strong trading conditions preceded both phases of MNW’s rally. The second strongest phase came 12 hours after the asset posted an ultra-robust historical outlook, reaching a VORTECS™ score of 90 on February 6. A subsequent price pump saw MNW drop from $1.33 to $1.72.

LEO: A weekly return of +52.56% after a VORTECS™ score of 91

VORTECS™ score (green/grey) vs LEO price, Feb 3-10. Source: Cointelegraph Markets Pro

Unus Sed Leo (LEO), an asset linked to crypto exchange Bitfinex, came under huge upward pressure this week when news emerged that the US Department of Justice had recovered around 80% of Bitcoin stolen from the platform during a hack in 2016. The volume and sentiment of the chat clearly shaped what the VORTECS™ algorithm recognized as extremely favorable trading conditions, marked by a score of 91 which ignited in the early hours of February 7. Less than two days later, LEO’s price skyrocketed. from less than $5 to $7.53 within hours.

As a famous saying goes, history doesn’t repeat itself, but it often rhymes. Even the most favorable historical precedent is no guarantee of future price action, but incorporating automated analysis of past performance data of crypto assets into a trading strategy can significantly improve its performance.

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 risks, including the risk of permanent and total loss. Past performance does not represent future results. Figures and graphs are correct at the time of writing or as otherwise specified. Live tested strategies are not recommendations. Consult your financial advisor before making any financial decisions.