November AlgoTrader update: buy and hold in October proves successful

Simon John 2020-10-26 08:09:54

It has been a tremendous month for the crypto market in general and Bitcoin specifically. Indicators are positive and this might be the start of a massive bull run.

BTC started out October 2020 with a price of $10,700 and through a massive one month bull run, reached a monthly high of over $14,000 on Oct 31. Now after a slightly non-eventful September, many crypto investors were talking about the need to re-test the previous yearly highs of $12,300 in August 2020. This seemed to become a self-fulfilling prophecy as the October BTC rally started. We smashed through the $12,000 resistance and now at the start of November we are hovering slightly below $14,000.

As always, we are looking at the AlgoTrader index score to determine our positions. An index of +100 tells us to hold Bitcoin and below 100 to switch to cash. The AlgoTrader strategy started at index 115 on Oct 1, and mid-October it went up as the signals were telling to hold Bitcoin. End of October it finished the month at index 147. We haven’t seen a score this high since July 2020 when the BTC price moved from $9100 to $12,000 in a few weeks. So all in all the signals have been very positive throughout the entire month of October and we finish on a high note.

When is it time to declare a new massive bull market for Bitcoin? If we look back to 2017-2018, that bull market all started when we reached new all-time highs above $1100. That was the time when the media frenzy started, and it was the main stream media which really powered the bull-run up to $20,000. Of course, investors on the inside had seen this coming for many months as previous months led the BTC price up from $250 to $1000. The key here for investors was to use this bull market indicator to position for another explosive bull market.

History is repeating, and now is the time when we are seeing very positive bull market indicator again. If you haven’t positioned yourself for another massive bull market, it’s time now. The AlgoTrader strategy has been on buy-and-hold mode since April 24 2020, and the indicators are looking very positive at the moment. Get your positions ready, it’s going to be a fun ride over the coming months.

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