Tom Demark’s (TD) Sequential gave a buy signal to Bitcoin, after it broke through the $71,000 mark in the last day.
Bitcoin TD Sequential Gives a Sell Signal Now
Analyst Ali Martinez explains in the new article post A TD Sequential has appeared on X in the Bitcoin price for 1 hour. The “TD SequentialIn technical analysis, “refers to an indicator used in locating likely points of price reversal.
The TD Sequential has two stages: the setup phase and the countdown. In the first phase, the candles are counted from one to nine, regardless of whether they have a red or a green polarity. Once the candles reach nine, it is assumed that an asset has experienced a turn around.
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The TD Sequential gives a Buy signal if all the candles before the final setup are red. Green candles, on the other hand would indicate a possible reversal to the downside.
After the set-up phase, comes the countdown. In this second phase, the indicator works similarly to the previous one. However, the candle count is now thirteen instead of nine. After the countdown is complete, it means that price has reached another point where a reversal may be likely.
Bitcoin’s 1-hour price has just completed a TD Sequential Phase of the first type. Ali shared the following chart that illustrates this cryptocurrency pattern.
The graph shows that TD Sequential recently completed its setup phase for Bitcoin with green candles. The coin is currently experiencing a strong uptrend. surged beyond the $71,000 level For the first time in mid-May.
A TD set-up would indicate that for the moment, the party is over. This could mean the coin has reached a local peak and a reversal of direction to the downside could be imminent.
While BTC’s TD Sequential might be a cause for concern in the near-term, a different TA indicator may indicate a more bullish outlook. CryptoQuant writer Axel Adler Jr. pointed out this in an X post, the Bitcoin Relative Strength Index (RSIThe level of () indicates that recent trends are beginning.
![Bitcoin RSI](https://fxruhanahmed.com/2/wp-content/uploads/2024/06/1717646741_339_Bitcoin-Surges-Past-71000-But-TD-Sequential-Says-Sell.jpeg)
The RSI is a measure of the size of the most recent price changes for any particular asset. According to the chart, BTC’s 14-day RSI is currently at 56%.
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This metric is usually considered undervalued if it drops below 30%. Oddly, BTC’s last three big uptrends started when the RSI reached a 56% value. If this pattern is real, BTC might see a big surge in the near future.
BTC price
Bitcoin is still climbing, despite the TD Sequential. The asset now exceeds $71,600.
Charts from TradingView.com and Dall-E.
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Source: www.newsbtc.com