Analysts have explained that Bitcoin has formed both a TD and death cross, which could lead to a possible dip in the price of these targets.
Bitcoin In Trouble as the 12-Hour chart Forms Two Bullish Signals
The new post On X, Ali talked about the two new signals formed recently in Bitcoin’s 12 hour chart. First, there is the a “death cross,” When the asset’s simple moving-average (SMA), short term, dips below the long-term average.
The 50-day SMA and the 100-day SMA are the equivalent of short-term, and long-term trends in the case of the death-cross. Such formations are historically considered as bearish signals. The price may suffer if the pattern becomes confirmed.
Another signal for cryptocurrency is the appearance of the Tom Demark (TD) Sequential. It is commonly used to locate the tops and bottoms of a price chart.
Two phases make up the TD Sequential “setup” You can also find out more about the following: “countdown.” After the asset has been through nine consecutive candles with the same polarity, one can say that the setup phase is complete. This may indicate that the asset has reached a likely pivot point after nine candles.
If the candlesticks in the formation are red, it is a signal to buy, but if there’s a bullish trend, it would indicate reversal towards the downside.
After the setup phase is completed, the countdown begins. The setup is similar to this phase, but candles are counted from nine instead of thirteen. After the completion of the countdown, it can be assumed that the product has reached a new potential high/low.
This chart, shared by Ali, shows that signals regarding both these patterns of technical analysis have been seen recently in the price of Bitcoin for the last 12 hours:
Two signals have formed recently in the price of BTC on a 12-hour basis | Source: @ali_charts on X
In the chart, it is clear that Bitcoin’s 12-hour price first showed a deathcross when the SMA for 50 days moved below the SMA of 100 days. After that, the TD Sequential was completed, and the indicator indicated a reversal of direction.
BTC’s price has increased since the double bearish pattern first appeared. heading downThe signals could already be active.BTC falls below $63,300, brace for possible dives to $61,000 or even $59,000,” “, says the analyst.
A potential drop to either of these levels would represent a 4.6% decline in the price, and a nearly 8% decrease if you were to go to the second level.
BTC price
Bitcoin is currently hovering around $64,000, and has thus far avoided falling below the target of $63,300 set by analysts.
It looks like the price has fallen in the past 24 hour | Source: BTCUSD on TradingView
Charts from TradingView.com, Featured Image from Shutterstock
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