Bitcoin Signal That Has Held Since December Says Its Time To Sell
An analyst has explained that an indicator that has been holding for Bitcoin since December is now giving a sell signal for the cryptocurrency.
TD Sequential Is Providing A Sell Signal On Daily Bitcoin Chart Currently
In a new post on X, analyst Ali discussed a TD Sequential sell signal forming in the Bitcoin daily price chart. The Tom Demark (TD) Sequential is an indicator in technical analysis used for pinpointing locations of probable tops and bottoms in any assets price.
The TD Sequential has two phases. The first is called the setup and lasts nine candles. Once nine candles (of the same polarity) are in, the setup completes, and the indicator signals a likely reversal for the price.
The direction of such a reversal naturally depends on the type of candles that formed the setup. If these candles were green, the indicator would imply a top for the asset, while red candles would suggest a bottom.
When the setup finishes, the countdown phase begins. In this phase, candles of the same type are counted again, except for thirteen. Once the countdown also completes, another potential reversal could be assumed to have occurred for the price.
Recently, Bitcoin has finished a TD Sequential phase of the former type. Here is the chart shared by the analyst that shows this pattern forming in the daily price of the cryptocurrency:
The TD Sequential setup that has just completed for BTC | Source: @ali_charts on X
As is visible in the graph, the TD Sequential setup has recently finished with green candles for Bitcoin. These green candles have come for the coin as it has enjoyed some sharp bullish momentum, which has taken its price beyond the $52,000 mark.
The fact that the TD Sequential setup has formed with green candles suggests the indicator may now be providing a sell signal for the cryptocurrencys price.
In the same chart, Ali highlighted the previous instances since December of last year where a setup was completed for the asset. It would appear that both TD Sequential buy and sell signals have held for the coin in this window.
Going by this pattern, the latest TD Sequential reversal signal might also hold for the asset. And as its a bearish one this time, the analyst expects a correction lasting for one to four daily candlesticks.
BTC Price
Bitcoins recent momentum has meant that the asset has been among the best performers in the sector, registering growth of around 16% during the past week.
Currently, the coin is hovering around the $52,500 level. The chart below shows the assets trajectory over the last month.
The price of the coin seems to have been sharply going up recently | Source: BTCUSD on TradingView
Featured image from Kanchanara on Unsplash.com, charts from TradingView.com
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
Source: NewsBTC.com
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