Bitcoin Rockets Above $71,000, However TD Sequential Signals ‘Sell’
In a stunning turn of events, Bitcoin has soared past the $71,000 mark, but according to TD Sequential, it’s time to sell. The renowned technical analysis indicator, TD Sequential, has generated a sell signal for Bitcoin after its impressive surge.
As Ali Martinez, a respected analyst, explained in a recent post, the 1-hour price chart for Bitcoin displayed a TD Sequential signal. TD Sequential is a widely used indicator in technical analysis that helps identify potential reversal points in an asset’s price.
The TD Sequential consists of two phases: setup and countdown. In the setup phase, candles of the same color (red or green) are counted up to nine. Once the nine candles are complete, it suggests a possible turnaround for the asset.
If the preceding candles in the setup phase were red, the TD Sequential would give a buy signal. Conversely, if the candles were green, it would indicate a potential downside reversal.
Once the setup phase concludes, the countdown phase begins. Similar to the setup phase, the countdown involves counting candles, but this time the count goes up to thirteen instead of nine. The completion of the countdown suggests another likely point of reversal.
In the case of Bitcoin, a TD Sequential setup with green candles in the 1-hour price chart recently finished. This pattern suggests that the party may be over for now, indicating a potential reversal to the downside.
While TD Sequential signals short-term concern for BTC, another technical analysis indicator points towards a bullish outcome. As highlighted by CryptoQuant author Axel Adler Jr, the Bitcoin Relative Strength Index (RSI) is currently at a level that historically marks the beginning of uptrends.
The RSI measures the magnitude of recent price changes in an asset. At present, the 14-day RSI for BTC stands at 56%. Traditionally, a value below 30% suggests undervaluation. Interestingly, the last three major uptrends in Bitcoin began when the RSI hit 56%. This pattern could be coincidental, but it might indicate an impending sharp surge for BTC.
Despite the TD Sequential signal, Bitcoin continues its ascent and has surpassed $71,600 at the time of writing.