Bitcoin Signal That Has Maintained Its Accuracy Since December Suggests It’s Time To Sell
An analyst has revealed that a reliable indicator for Bitcoin, which has been accurate since December, is now giving a signal to sell the cryptocurrency.
TD Sequential, a popular technical analysis indicator, is currently providing a sell signal on the daily Bitcoin chart. In a recent post, analyst Ali discussed how this indicator, known as the “Tom Demark (TD) Sequential,” is used to identify potential tops and bottoms in the price of any asset.
The TD Sequential consists of two phases. The first phase, called the “setup,” lasts for nine candles. Once nine candles of the same polarity have completed, the setup phase ends, signaling a possible price reversal.
The direction of the reversal depends on the color of the candles that formed the setup. Green candles suggest a potential top, while red candles indicate a possible bottom.
After the setup phase, the “countdown” phase begins. During this phase, candles of the same polarity are counted again, except for thirteen. Once the countdown phase is completed, another potential price reversal could occur.
Bitcoin recently completed a TD Sequential phase with green candles, indicating a potential top for the cryptocurrency. The analyst shared a chart displaying this pattern forming in the daily Bitcoin price.
This setup with green candles suggests that the TD Sequential indicator may be providing a sell signal for Bitcoin’s price.
The analyst also highlighted previous instances since December where setups were completed for Bitcoin. It appears that both TD Sequential buy and sell signals have been reliable during this period.
Based on this pattern, the analyst expects the latest TD Sequential reversal signal to hold for Bitcoin. As it is a bearish signal this time, a correction lasting one to four daily candlesticks is anticipated.
Currently, Bitcoin is trading around the $52,500 level and has experienced significant growth of approximately 16% in the past week. The chart below illustrates the asset’s performance over the last month.
It is important to note that the accuracy of any indicator or signal is not guaranteed, and investors should conduct thorough research and analysis before making any trading decisions.