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Bitcoin hits over $71,000, but TD Sequential advises to ‘Sell’

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The Tom Demark (TD) Sequential has recently given a sell signal for Bitcoin after the asset surged past the $71,000 level. This signal, as analyzed by Ali Martinez, is based on the TD Sequential indicator used in technical analysis to predict potential price reversals. The indicator consists of two phases: setup and countdown. The setup phase involves counting nine candles of the same color, while the countdown phase requires counting thirteen candles. Once these phases are complete, a potential reversal point is identified.

In the 1-hour price chart for Bitcoin, the TD Sequential setup phase has been completed with green candles, indicating a possible reversal to the downside. This signal comes as Bitcoin reaches a new high above $71,000, raising concerns of a local top being reached. While the TD Sequential points towards a short-term bearish outcome, another technical analysis indicator suggests a bullish trend for the asset. The Relative Strength Index (RSI) for Bitcoin is currently at 56%, a level at which previous uptrends have begun.

The RSI tracks recent changes in the asset’s price, with values below 30% indicating undervaluation. Interestingly, the last three major uptrends in Bitcoin started when the RSI was at 56%, raising the possibility of a potential price surge in the near future. Despite the sell signal from the TD Sequential, Bitcoin continues to climb, surpassing $71,600. This conflicting information from different indicators highlights the uncertainty and volatility in the cryptocurrency market, as traders and investors navigate through various signals to make informed decisions.

As Bitcoin remains above $71,000, traders will be closely monitoring the price action and key technical indicators to determine the next potential move for the asset. The TD Sequential sell signal and the RSI bullish pattern offer contrasting views on the short-term future of Bitcoin, adding to the complexity of market analysis. With the cryptocurrency market experiencing heightened volatility and price fluctuations, it is essential for traders to have a comprehensive understanding of technical analysis tools and indicators to make informed trading decisions. As Bitcoin continues to capture the attention of investors and traders worldwide, staying informed and updated on the latest market trends and signals is crucial for navigating the dynamic cryptocurrency landscape.

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