Concerns Arise as Bitcoin Price Holds Above $68,000 with TD Sequential Sell Indicator

Cryptonews Nia Simpson October 20, 2024

Concerns Arise as Bitcoin Price Holds Above $68,000 with TD Sequential Sell Indicator

Bitcoin’s price currently holds above $68,000, yet concerns of a brief correction are raised by analyst Ali Martinez, citing a sell signal from the TD Sequential indicator. The cryptocurrency has seen a slight dip recently but has increased nearly 9% over the past week, leading to speculation about its ability to reach new highs following any corrective pullback.

Bitcoin continues to trade above the $68,000 mark but has shown limited movement over the weekend, following a surge earlier in the week. Despite this stability, concerns have emerged regarding the sustainability of this price level, as insights from a notable analyst on social media suggest a potential downward adjustment may occur soon. Notable cryptocurrency analyst Ali Martinez has shared his analysis on the social media platform X, indicating that the cryptocurrency may prepare for a short-term correction. He noted that the “Tom Demark” (TD) Sequential indicator has generated a sell signal on Bitcoin’s daily chart, a tool used in technical analysis to detect possible trend exhaustion and reversals. The TD Sequential indicator operates through two primary phases: the TD Setup and TD Countdown phases. The Setup phase consists of nine successive candles of the same nature, either bullish or bearish, where a bullish Setup appears when a candle closes higher than the fourth prior candle. Conversely, a bearish Setup occurs when a candle closes lower than the candle from four periods ago. Recent chart activity indicates that Bitcoin has printed a “9” on its daily chart, signaling the end of the bullish Setup phase. As a result, the price may be due for a brief retreat in the coming days even as there is widespread anticipation for Bitcoin to potentially revisit or even exceed its all-time high. Martinez advises that investors should prepare for a price pullback prior to achieving new highs. Currently, Bitcoin is valued at approximately $68,272, reflecting a slight decrease of 0.5% over the past day. Notably, data from CoinGecko indicates a substantial increase of nearly 9% over the past week, reinforcing the cryptocurrency’s resilient performance despite recent concerns.

Bitcoin’s price fluctuation and market behavior are often closely analyzed by financial analysts and traders. The use of technical analysis tools, such as the TD Sequential indicator, plays a critical role in predicting market trends and potential reversals. This article discusses the current state of Bitcoin’s price as it hovers above $68,000, with insights into expected market corrections based on influential technical indicators and expert analyses. Understanding the context of Bitcoin’s market position and the mechanisms of technical analysis provides a clearer picture for stakeholders and investors alike.

In summary, while Bitcoin maintains a position above $68,000, the technical analysis suggests a brief correction may be imminent due to the recent sell signal from the TD Sequential indicator. Analyst Ali Martinez encourages investors to remain cautious and prepare for a temporary downturn before a potential resurgence towards new price peaks. The current valuation reflects a modest decline, yet an overall increase over the past week underscores Bitcoin’s resilience in the cryptocurrency market.

Original Source: www.tradingview.com