Crypto Market Barometer released on advance-decline.net

 

Crypto Market Barometer released

Today I published my simple but easy-to-read Crypto Market Barometer on our website https://www.advance-decline.net.

Click here to get to the new Crypto Market Barometer.

This is how the main chart looks like:

What's behind the new Crypto Market Barometer

We believe that one simple but effective method of gauging the health of a market is to look at how many of the most important individual assets trade above their important SMAs. Since SMAs are a proven way of determining the current trend, a market must be in an uptrend, if more than 50% of its biggest assets trade above their long-term SMAs. If they trade below their long-term SMAs, they must be in a downtrend.

For the crypto market, I decided to check the popular BitPanda Crypto Index BCI10. It contains the 10 biggest crypto currencies by market capitalization, and frankly, by only looking at BitCoin, Ethereum, Polkadot and maybe Binance, we already have most of the market covered (again, in terms of market capitalization). So by looking at all 10 crypto currencies and checking if they trade above their important SMAs, we thus can determine if we are in a bull or bear market. As of now, the following crypto currencies are considered:

• BitCoin
• Ethereum
• Binance
• Cardano
• Solana
• Terra Luna
• Polkadot
• Dogecoin
• Shiba Inu
• Cosmos
  

For our own barometer, we have a gauge for the short-term trend (SMA20), the mid-term trend (SMA50) and the long-term trend (SMA100 and SMA200).

As of today (Thursday 26.05.2022), the barometer shows we are in an extreme bearish zone. Only 10% of the 10 biggest crypto currencies trade above their SMA20, and 0% of them trade above their SMA50, SMA100 and SMA200.

In a healthy bull market, the barometer for SMA100 and SMA200 should be above 50%.

I hope you find this barometer useful and maybe it helps you to decide how you position yourself in the current market.

 

More to come

The Crypto Market Barometer is just the start. I will try to add more markets, such as the US stock markets, the EU stock markets and the Asia stock markets as well. All of this will take time, because the hardest part is to find a reliable (but free) data source that is needed to calculate the relevant data.

Your feedback

In the last weeks I have received some e-mails from you with feedback and requests. I just want to let you know that I enjoy reading that someone actually uses the website advance-decline.net and that some of you are interested in having more features included.