U.Today: On the hourly chart of , TD Sequential indicates a buy signal, suggesting that BTC may rise in one to four candles. This is often used in technical analysis to detect potential turning points in asset prices.
The indicator, created by Tom DeMark, finds trend exhaustion points by examining a sequence of price bars. The indicator has two phases: the setup phase and the countdown phase.
The setup phase requires nine consecutive price bars, each of which closes higher (in a downtrend) or lower (in an uptrend). The countdown phase, which follows if this setup is successful, looks for a chain of 13 bars that close lower (in a downtrend) or higher (in an uptrend) than the previous two bars.
When a countdown ends, it usually indicates that the trend has reached its limit and a reversal is about to occur. The TD Sequential has shown a buy signal on Bitcoin's hourly chart, potentially predicting a price reversal. This signal may provide a short-term breakout of the current downtrend, pointing to a possible price increase in the next four hourly candles.
The price of Bitcoin has fallen recently for several reasons. First, settlement groups have been a major factor. A cascading effect has been observed in falling prices due to large sell-offs and forced liquidations of leveraged positions. The downward pressure was exacerbated by large groups of liquidations ranging between $72,000 and $69,000 and $66,000.
Additionally, deviations from US Bitcoin ETFs have contributed to the BTC price action we are seeing now. These ETFs experienced a net outflow of $64 million on recent Monday, breaking a 19-day streak of inflows. The price of Bitcoin has been further pressured by this shift in investor sentiment from one of accumulation to one of selling.
This article was originally published on U.Today.
