After days and days of an uptrend, Bitcoin has finally started to retrace over the past couple of hours.
The price of the leading cryptocurrency is now at $9,800 — just under 4% shy of the $10,200 local top put in on Sunday, which lines up with a key resistance.
Related Reading: Ripple’s XRP Makes “Huge” Achievement, Setting Stage for Strong Price Surge
While many traders remain bullish on Bitcoin, a key indicator that nailed BTC’s $14,000 top in June 2019 suggests that bears may continue to assert control over the crypto market in the coming days, meaning a stronger pullback will take place.
Bitcoin’s 50% Rally Might Have Ended… for Now
As reported by NewsBTC previously, Thomas Thorntown of Hedge Fund Telemetry recently warned that a “13” candle was being formed by the Tom Demark Sequential and Countdown indicator.
For those unaware, the TD Sequential is a time-based indicator most often used in the cryptocurrency markets that prints “9” and “13” candles at reversal points in markets.
The 13 candle was confirmed today, with Thornton adding that this technical signal, coupled with Bitcoin being overbought, is a sign that investors should start selling their longs and flipping neutral.
#BITCOIN DeMark Sequential Countdown 13 today. We recommended selling the long last week with 50% gain from December buy signals. pic.twitter.com/0FrFu7bt5q
— Thomas Thornton (@TommyThornton) February 10, 2020
This signal is important because the TD Sequential has been extremely accurate in calling Bitcoin’s macro inflection points over the past few years.
Indeed, as the creator of the indicator Demark noted in a recent interview with Bloomberg, his indicator printed a 13 candle when Bitcoin hit $20,000 in December 2017, when BTC cratered to $3,150 on December 14th of 2018, and at the $14,000 top in June of 2019.
Not to mention, it printed a 13 at the $6,400 bottom in December of 2019.
This historical precedent of 13 marking trend changes in Bitcoin implies that the next few weeks will see BTC retrace a handful of percent, maybe more, lower.
How Far Will BTC Fall?
Analysts are currently divided over how far the impending correction could take the cryptocurrency; some say the drop already ended at $9,800, others say that Bitcoin is in for a steeper drawdown.
Josh Olszewicz of Brave New Coin is eyeing $8,500 for the price of the leading digital asset, noting that there exists a confluence of strong technical support: a key moving average, the Ichimoku Cloud, and another Ichimoku level.
all im watching for over the next week
– 8500 $BTC
– 175 $ETH
– mass OI culling
– funding reset
– futs prem reset#ValentinesDayMassacre pic.twitter.com/Q9QCLCW01Q— Josh Olszewicz (@CarpeNoctom) February 10, 2020
Cold Blooded Shiller quipped in his own tweet that he “will probably buy some BTC at $7,700,” implying he expects the price of cryptocurrencies to head dramatically lower from here, despite the developments made over the past few weeks.
Will probably buy some $BTC at $7.7k
— Cold Blooded Shiller (@ColdBloodShill) February 10, 2020
Featured Image from Shutterstock
