Sorry Bulls: Bitcoin Prints Perfect Sell Setup Last Seen at February’s $10k Top

After weeks of bullish price action, Bitcoin finally topped $10,000 today, rallying as high as $10,100 on the back of an influx of buying pressure.
Many say that this recent move sets the stage for even greater growth, but a trader recently argued that BTC printed a “perfected” sell setup. The setup was the exact same one seen at 2020’s highs of $10,500 and indicates that downside is currently imminent.
Top Indicator Just Printed a “Perfect” Bitcoin
According to one top trader, Bitcoin’s two-day chart just printed a Tom Demark Sequential (TD Sequential) “9” — last seen at the peak of the Q1 2020 bull run at $10,500. What followed was a steep decline of over 60% towards $3,700.
“9” TD Sequential candles are often seen at reversal points in markets, as evidenced in the chart below.
Chart from @Moe_mentum_
Along with the “9” candle on the two-day chart, the Sequential flashed a bearish signal on another Bitcoin time frame.
According to Joe McCann — a Cloud/AI specialist at Microsoft and crypto trader — the TD Sequential just printed a “13” candle on Bitcoin’s one-day time frame.
Some say that this TD Sequential signal is more notable than “9” as “13” candles were seen at the top of BTC’s bull run in the middle of 2019 at $14,000 and at the $6,400 lows seen in December 2019.
Chart from Joe McCann, crypto trader
This lines up with the fears that Bitcoin will crash in the wake of the halving, just four days away according to estimates.
Speaking to Bloomberg, Christel Quek, chief commercial officer and co-founder at Bolt Global, remarked:
“This is an unprecedented time as liquidity remains a priority for investors fleeing equity markets. Therefore, while Bitcoin should rise into $10,000s after the halving, it could be followed with a price drop as investors engage in profit taking. No level of technical support can stand when the economy is drained.”
Meltem Demirors, CSO of crypto research firm and investment fund CoinShares, echoed this skepticism. She proposed that we will get a classic “buy the rumor, sell the news” event, whereas prices will drop as halving subsides.
Long-Term Bull Trend Remains Intact
Despite these fears of a short to medium-term retracement, analysts believe that the market outlook remains decisively bullish.
Kelvin Koh, partner at crypto fund The Spartan Group and a former Goldman Sachs partner, wrote that “2020 is shaping up to be a bullish year for crypto.”
Backing this sentiment he identified a swath of trends that will likely decrease demand for digital assets which includes but is not limited to: the Bitcoin halving, the adoption of DeFi, stablecoins gaining adoption, regulatory clarity on cryptocurrency, and a new crypto fund from a top VC.

2020 is shaping up to be a bullish year for crypto.
– BTC/BCH/BSV Halving– DeFi growth on ETH– Launch of Polkadot, Solana, Near– Exponential growth of stablecoins– Germany, S Korea, India approved crypto– Unscathed by most severe crisis in a century– A16Z new $515M fund
— SpartanBlack (@SpartanBlack_1) May 5, 2020

Bitcoin “whales,” or large holders, sure are betting on cryptocurrency continuing to mount higher in the months ahead.
Citing data from Glassnode, Willy Woo on May 5th noted that the population of large Bitcoin holders (1,000+ coins) has increased strongly since January’s lows. This indicates these users have been in “solid accumulation mode,” which is a “macro bullish” trend:
“Whale population spotted increasing in the wild. They’ve been in solid accumulation mode since January unperturbed by the COVID crash. This is macro bullish,” Woo said in reference to the chart below.
Photo by 贝莉儿 DANIST on Unsplash

Source: https://www.newsbtc.com/2020/05/08/sorry-bulls-bitcoin-prints-perfect-sell-setup-last-seen-at-februarys-10k-top/?utm_source=rss&utm_medium=rss&utm_campaign=sorry-bulls-bitcoin-prints-perfect-sell-setup-last-seen-at-februarys-10k-top

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