Trend Reversal

A trend reversal refers to a significant change in the direction of a price movement in financial markets, indicating that a Bullish trend may turn bearish or vice versa. This can occur due to various factors such as economic data reLeases, Market Sentiment shifts, or technical indicators signaling overbought or oversold conditions. For example, if a Stock has been in a consistent uptrend and suddenly begins to show lower highs and lower lows, it may indicate a potential bearish reversal. A case study can include the reversal of Bitcoin’s price in late 2017, when it peaked around $20,000 and then plummeted, marking a shift from a strong Bullish trend to a prolonged bearish market.