Bitcoin price is trading at around $27,000 per coin after failing to hold above $30,000. Crypto market sentiment would suggest that BTC is already back at lows, ready for a fresh decline.
However, if a perfected TD buy setup is an indication, then BTC might have just finished its pullback and is ready to continue upward with renewed momentum.
A Perfect Pullback For Buying The Dip In Bitcoin?
The cryptocurrency community has been on a rollercoaster ride of emotions the past several weeks. Bitcoin’s early 2023 rally caught bears by surprise. Rising beyond $30,000, however, was an opportunity to strike while bulls were blinded by euphoria from recent returns.
Much more quickly than bulls became exuberant over the top crypto asset by market cap doubling in value since bear market lows, bears are celebrating a continuation of crypto winter without so much as a sign of a symbolic snowflake.
Another sign has triggered elsewhere. In this case, a perfected TD8 buy setup has appeared on daily BTCUSD spot exchange charts. A perfected signal arrives when a new low is made. The buy setup usually reaches a full TD9 count, but has perfected ahead of schedule. This could still mean another low to put in a perfected TD9, but the 8-count could also do the trick.
Will Bitcoin bounce on the perfected TD8? | BTCUSD on TradingView.com
BTCUSD Triggers TD8 Setup On Daily Price Charts
The TD Sequential is a market timing tool created by Thomas Demark. It counts a sequence of up and down candles, until the sequence is satisfied, and the count reaches 9. If the TD9 setup fails to produce the expected reversal, a countdown to TD13 begins.
A TD13 signals trend exhaustion. Both the TD9 and 13 don’t necessarily guarantee a reversal, but it does improve the probability if at a key level. The tool has worked well on the buy side of BTCUSD daily charts since the local bottom was put in.
As you can see, past perfected TD setups led to an immediate upside reaction. However, it is important to note that each of the above signals are TD9s and not a TD8. As notable as the signal appearing today is, the reaction over the next 24-48 hours is what matters the most.
If BTCUSD fends off more significant downside and buying kicks in here at this signal, it could tell the market the correction is over, and the bull run is going to continue.