Bitcoin Signal That Has Held Since December Says It’s Time To Sell

Keshav Verma

Last Updated: June 11, 2024 8:33 am

3 mins read

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An analyst has explained that an indicator that has been holding for Bitcoin since December is now giving a sell signal for the cryptocurrency.

TD Sequential Is Providing A Sell Signal On Daily Bitcoin Chart Currently

In a new post on X, analyst Ali discussed a TD Sequential sell signal forming in the Bitcoin daily price chart. The “Tom Demark (TD) Sequential” is an indicator in technical analysis used for pinpointing locations of probable tops and bottoms in any asset’s price.

The TD Sequential has two phases. The first is called the “setup” and lasts nine candles. Once nine candles (of the same polarity) are in, the setup completes, and the indicator signals a likely reversal for the price.

The direction of such a reversal naturally depends on the type of candles that formed the setup. If these candles were green, the indicator would imply a top for the asset, while red candles would suggest a bottom.

When the setup finishes, the “countdown” phase begins. In this phase, candles of the same type are counted again, except for thirteen. Once the countdown also completes, another potential reversal could be assumed to have occurred for the price.

Recently, Bitcoin has finished a TD Sequential phase of the former type. Here is the chart shared by the analyst that shows this pattern forming in the daily price of the cryptocurrency:

The TD Sequential setup that has just completed for BTC | Source: @ali_charts on X

As is visible in the graph, the TD Sequential setup has recently finished with green candles for Bitcoin. These green candles have come for the coin as it has enjoyed some sharp bullish momentum, which has taken its price beyond the $52,000 mark.

The fact that the TD Sequential setup has formed with green candles suggests the indicator may now be providing a sell signal for the cryptocurrency’s price.

In the same chart, Ali highlighted the previous instances since December of last year where a setup was completed for the asset. It would appear that both TD Sequential buy and sell signals have held for the coin in this window.

Going by this pattern, the latest TD Sequential reversal signal might also hold for the asset. And as it’s a bearish one this time, the analyst expects a correction lasting for one to four daily candlesticks.

BTC Price

Bitcoin’s recent momentum has meant that the asset has been among the best performers in the sector, registering growth of around 16% during the past week.

Currently, the coin is hovering around the $52,500 level. The chart below shows the asset’s trajectory over the last month.

The price of the coin seems to have been sharply going up recently | Source: BTCUSD on TradingView

Featured image from Kanchanara on Unsplash.com, charts from TradingView.com

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.