How to Identify Trend Like an Institutional Investor on BTC!

Here we are, coming back to the concept of mass.

Let's pretend you're rolling a snowball up a hill. The further you roll it, the larger the snowball will get. The heavier the snowball, the more force will be required to continue rolling it. Once the snowball reaches critical mass it will roll down to the bottom of the hill. Of course, you only bet on that occurrence when the snowball actually starts to roll down the hill when there is no longer sufficient force to sustain it. Turns out you can get these same readings in the form of "distributional mass," or the width of the bellcurve surrounding price.

Adapting periods to match these bands has excellent results! The 300 1.25 standard deviation perfectly represents the pivot of trending. As soon as that pivot was crossed, price immediately started rolling down to the bottom of the hill, (the 300 moving average.) That is still bitcoin's price target.

Interestingly enough, a new shorter term distribution has begun to expand conversely to the original downward mean reversion. We're actually seeing a short term bullish mean reversion to the 60 moving average before price can revert down to the 300 moving average.

However, it is important to know that long term mean reversion CAN trump short term mean reversion. After all, momentum will be stronger if an object has greater mass.

Want to learn more about trading with "mass" as a metric? Click below!