📅 Time: December 3, 2025
📊 Current HS Index: 55.252
📈 Key Signal: Golden Cross (Index crosses above MA20) / Trend Reversal

1. Market Review: Refusing the darkest hour, the bulls return strongly

Just a few days ago, the HS Index was still hovering around the freezing point of 26.025 (historically low value area), and we had reminded everyone to pay attention to the opportunity for 'left-side layout'.
Latest data speaks: The market has validated the judgment of the HS model. Today, the index recorded 55.252, achieving a doubling rebound in just two days!
From the latest 【HS Index Trend Analysis】 chart, it is clear to see:

  • Key Breakthrough: The green line (index) has strongly risen above the orange line (MA20 moving average). This is the first effective breakout in the past month, marking the market's official switch from 'sliding down to find a bottom' to 'oscillating upwards' mode.

  • Breaking Away from the Bottom: The index has quickly broken away from the lower Bollinger Band, moving towards the middle band, indicating that panic selling has been completely digested.

2. Quantitative Logic Analysis: Why is it not just a rebound now?

Based on the underlying construction logic of the Hengsheng Index (PDF core algorithm), this rebound has profound connotations:

  • BTC Benchmark Stabilization (32-day cycle): The major coin has ended its previous one-sided decline, and volatility has returned to normal, providing a safety cushion for the market.

  • Altcoin Sentiment Activation (30-day cycle): The rapid rise of the index usually indicates that it is not just BTC rising; the relative strength indicators of altcoins are starting to recover. Funds are beginning to shift from 'risk aversion' to 'risk appetite recovery', and the top cryptocurrency (Top 20% by trading volume) is starting to accumulate.

  • Mean Reversion: Currently, 55.252 is still below the six-month average of 68.382, indicating that the current rise belongs to value reversion rather than bubble accumulation, and there is still room for the market.

3. Hengsheng Quantitative Investment Suggestions (Medium to Long-term Strategy)

With the technical aspect establishing 'right-side buying points', our strategy recommendation shifts from 'defensive dollar-cost averaging' to **'offensive allocation'**.

🚀 Core Strategy: Follow the trend, prioritize strength and quality

  • Position Adjustment:
    It is recommended to increase positions to 50%-70%. Investors who completed their bottom position layout in the 26 range are now at the best time for right-side accumulation.

  • Configuration Direction:

    • Core Assets (BTC/ETH): Continue to hold as ballast.

    • High Elasticity Tracks: As the HS Index breaks through the 50 watermark, market activity increases. It is recommended to focus on the strong altcoins (Layer 1, AI, Meme leaders) that first break through the 30-day moving average in this rebound. Hengsheng logic indicates that the head effect is most pronounced at the beginning of the reversal.

  • Risk Control Reminder:
    Although the trend is improving, the Bollinger Band opening in the chart has not yet fully widened. If the index retraces to MA20 (approximately 40-45 range) and does not break, it is an excellent second entry opportunity; if it breaks below MA20, position reduction for defense is required.

4. Market Outlook

The rise of the Hengsheng Index from 26 to 55 is not just a change in numbers, but a reshaping of market confidence.
If a few days ago we were 'searching for starlight in the dark', now the horizon has already turned pale. Once a trend is formed, it will not easily change.

💡 Keep up with Hengsheng Quantitative, use data to see through the fog, and grasp every cycle's transitions.

📢 Disclaimer: This article is based on Hengsheng quantitative model data analysis for reference only and does not constitute absolute investment advice. The market has risks, and investments should be made cautiously.

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