Trend reversal: Bitcoin takes a bearish turn
Through most of October, Bitcoin was trading above $80,000 level, but was unable, apparently to rise further toward its 2025 highs above $125,000. Today, Bitcoin is trading significantly lower, just above $73,500 after yesterday's negative close at $74,940 (CME futures).
In fact, yesterday's close tipped most of our I-System trend following strategies from long positions to short as you can see in the attached screenshot form the I-System application. It shows the CME Bitcoin futures price overlaid with I-System trend function (the red angular line).
When the trend function is along the top extent of the chart, the I-System judges that the market is in an uptrend and when it's along the bottom extent that the market is in a down-trend. The line in the sub-chart shows the strategy's performance since inception, in January 2024. The chart is also a fair reflections about the way a typical trend following algorithm trades.
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