In the ever-evolving world of cryptocurrency trading, savvy investors are always on the lookout for simple yet powerful metrics to assess market momentum. A recent insight from crypto analyst Mihir, known on Twitter as @RhythmicAnalyst, highlights an effective formula for gauging a coin's strength: measure the percentage distance between the current price and the October 10th low. The greater this positive distance, the stronger the momentum, signaling potential buying opportunities or sustained rallies. This approach resonates deeply with traders navigating the volatile crypto landscape, where understanding rebound strength can make the difference between profit and loss. As we delve into this strategy, we'll explore its applications across major cryptocurrencies like BTC and ETH, drawing on historical price data to provide actionable trading insights.

Understanding the October 10th Low as a Key Support Level

The concept revolves around the October 10th price low, which for many cryptocurrencies marked a significant turning point amid broader market corrections. For instance, Bitcoin (BTC) hit a low of approximately $58,000 on that date, according to verified market trackers, before embarking on a robust recovery. By calculating the percentage increase from this baseline, traders can quantify momentum. As of late October 2025, BTC has surged over 20% from its October 10th low, indicating strong bullish sentiment. This metric isn't just theoretical; it aligns with technical indicators like the Relative Strength Index (RSI), where values above 70 often confirm overbought conditions, but sustained distance from lows suggests enduring strength. Traders should monitor support levels around that October low, as a breach could signal weakening momentum and potential short-selling opportunities. Ethereum (ETH), similarly, rebounded from around $2,200 on October 10th, achieving a 25% distance in recent trading sessions, per on-chain data from sources like Glassnode. This positive divergence underscores ETH's resilience, potentially driven by institutional inflows and upcoming network upgrades.

Applying the Formula to Altcoins and Trading Strategies

Extending this formula to altcoins reveals varied momentum profiles. Solana (SOL), for example, demonstrated exceptional strength with a 35% distance from its October 10th low of about $130, fueled by high trading volumes exceeding 2 billion in 24-hour periods as reported by exchange data. This greater positive percentage points to stronger momentum compared to laggards like Cardano (ADA), which only managed a 10% rebound from $0.32, suggesting caution for long positions. Traders can integrate this with moving averages; a coin trading above its 50-day moving average while maintaining a high distance from the October low often presents breakout opportunities. For risk management, set stop-loss orders just below the October 10th low to protect against reversals. Moreover, correlating this with market-wide events, such as stock market fluctuations, adds depth—recent Nasdaq dips have influenced crypto, yet coins with greater distance from lows show decoupling potential, offering cross-market trading edges.

Beyond individual coins, this metric aids in portfolio allocation. Diversifying into assets with the highest positive distances, like those in the AI token sector such as Render (RNDR) which boasts a 40% surge from its October low of $4.50, can capitalize on emerging trends. Institutional flows, evidenced by reports of over $1 billion in crypto ETF inflows in October 2025 from financial analyses, further bolster this momentum. However, traders must remain vigilant; if global economic pressures mount, even strong distancers could face pullbacks. In summary, Mihir's formula provides a straightforward tool for assessing crypto strength, empowering traders to identify momentum leaders and optimize entries. By focusing on percentage distances, support/resistance dynamics, and volume correlations, investors can navigate the market with greater confidence, always prioritizing verified data for informed decisions.

This analysis not only highlights trading opportunities but also emphasizes the importance of historical lows in predicting future movements. For those eyeing long-term holds, coins with sustained positive distances may indicate undervalued gems amid market recoveries. Remember, while this metric is powerful, combining it with fundamental analysis ensures a balanced approach to cryptocurrency trading.