Bitcoin rose to $29k yesterday for the first time in two months, after which it went on to $30k. Since then, there have been speculations that the price would continue to fire up and could even trigger the much-awaited bull run. However, top analyst Ali Charts is seeing things differently. According to him, the TD Sequential Indicator is showing a sell signal and a possible correction below $29k.
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What is the TD Sequential Indicator?
The TD Sequential is a technical indicator used to identify buying and selling opportunities in the market. It was created by market technician Tom DeMark and aims to identify exhaustion points when a trend is likely to reverse.
The indicator uses a series of numbered candlesticks to identify potential reversal points. When it spots 9 or 13 consecutive candlesticks closing above or below the previous candle’s close, it signals a likely trend reversal.
Ali Charts’ Analysis
According to Ali Charts, the 4-hour Bitcoin chart is presenting a sell signal on the TD Sequential Indicator. This indicates that Bitcoin’s uptrend may be exhausted and is at risk of a correction.
Specifically, Ali sees Bitcoin potentially dropping to around $28,800 if the sell signal is validated. This would represent a drop of nearly 5% from current levels.
While the TD Sequential is not a definitive reversal signal, it does warn that the trend is getting overextended and may be due for a pullback. If Bitcoin’s price confirms the signal with a decisive break below $29k, a more significant correction could ensue.
Ali Charts recommends being cautious and watching for a reversal to $28,800 to confirm the next support based on the signal on the TD Sequential. For now, the bulls remain in control above $29k, but the indicator presents a warning of potential exhaustion ahead.
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