One particular indicator that’s repeatedly shown chilling accuracy across all major assets, especially Bitcoin, is now signaling that one final pump may be in the cards before a sell signal triggers, representing a top and end to the current rally.
Bitcoin 3D Chart Readies TD 9 Sell Signal, But Higher High Needed For Perfected Setup
The TD Sequential indicator has been a popular topic on NewsBTC lately, with many assets triggering the signal, and then markets responding as the tool predicted.
The tool recently called Bitcoin’s recent local high, absolutely nailed the top at $10,500 back in February and has made many other epic calls in the past.
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The TD Sequential indicator called the all-time high peak perfectly, then again at Bitcoin’s current bear market $3,200 bottom. It’s not perfect, however, and recently signaled XRP was a buy on monthly timeframes, and the asset continues to suffer.
But given the repeated accuracy and how it functions, it suggests that a higher high in the Bitcoin price charts is possible, perfecting the TD 9 sell setup.
The indicator works by numbering candles in a sequence. The sequence resets if a new high or low is set ahead of the setup perfecting at 9 or 13. A 9 setup is perfected only when the 8 or 9 candle is higher than the 7. The best setups come from when 9 is higher than the 8 candle also.
The 3-day Bitcoin price chart has just reached a 9, but the setup has yet to perfect. If Bitcoin reaches a higher high within the next 36 hours, the setup will be perfected and a reversal likely.
Real Crypto Rally Or Is This Just a Dead Cat Bounce Before Low Is Set
Following the record-breaking crypto market collapse last month due to the coronavirus outbreak impacting the economy and ushering in the first recession since 2008, Bitcoin and altcoins have made a strong recovery. But could the rally have legs, or is this just another dead cat bounce before a new low is put in.
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If Bitcoin and the rest of the crypto market reverses here, setting a lower high, the crypto asset class is at risk of setting not only a lower low on higher time frames but setting a deeper, final, bear market bottom.
Bitcoin’s halving is next month, and while the event has long been thought to be bullish, the black swan event that is the coronavirus has markets spiraling out of control in fear.
Given the accuracy of the sell signal, the economy only getting worse, chances of Bitcoin diving deeper is high. However, the devaluation of the dollar combined with the asset’s digital scarcity could save the crypto asset and cause its value to rise in the months ahead.
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