Market Timing: Why Bitcoin Could Sweep Lows Before A Bounce

Tony "The Bull" Severino

1 year ago

3 mins read

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Bitcoin price is consolidating above $35,000, trying to build enough support to make an attempt at returning to local highs. Once there, if or not the bull run is still on will become a lot clearer.

But before that happens, there could be one more deep sweep of lows, according to a highly accurate market timing indicator. Here’s what the TD Sequential indicator – created by market timing wizard Thomas Demark – says about the current price action and what to expect in the days ahead.

Why Bitcoin Price Could Sweep Lows Before A Bounce Is Here

The top cryptocurrency by market cap just saw the close of one of the worst monthly candles on record, calling into question if the bull run market structure is in tact, or if the cycle has fizzled out long before anyone anticipated.

Each market cycle has been lengthening thus far, yet this recent cycle would be capped off at only 26 months since the bottom. Most signs suggest it just isn’t yet time for the greater underlying trend to have ended.

Related Reading | Five Signs That The Bitcoin Bottom Is In

Bitcoin price is now building support after a vicious selloff that wiped more than $30,000 out from the price per coin. Surely that’s enough downside – right?

According to the TD Sequential indicator on multiple timeframes, price action could take the first ever cryptocurrency another level lower, sweeping lows before a meaningful bounce.

There is an 8 count on most timeframes on the TD Sequential | Source: BTCUSD on TradingView.com

The Wizard Of Market Timing: All About The TD Sequential

The TD Sequential indicator is a market timing indicator created by Thomas Demark. All of Demark’s highly regarded tools are focused on timing, and less-so the price of Bitcoin or other assets.

The timing is based on a sequence of candles resulting in a buy or sell signal when a nine count is reached. An eight count can sometimes produce the bounce that crypto holders are hopeful for, however, a “perfected” nine setup is what they really want.

The reason why crypto investors won’t like the setup that’s to come, is because for the nine candle to “perfect” the candle must fall deeper than the lows of the previous candles. Eight counts can also perfect and prompt a reversal, but because there’s so many eight counts across multiple timeframes on Bitcoin price, the probability of more downside and one of these candles perfecting is just too high to ignore.

Aside from the buy signal that’s to come, technicals are extremely bullish on Bitcoin. Is this the “perfect” opportunity to buy one last time?

Featured image from iStockPhoto, Charts from TradingView.com

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.

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