Bitcoin Price Holds Above $68,000, But TD Sequential Signals Potential Correction
Bitcoin Price Holds Above $68,000, But TD Sequential Sounds Sell Alarm
The Bitcoin price has yet to replicate its midweek surge over the weekend, hovering around the $68,000 level. Despite the quiet performance in the past day, the premier cryptocurrency has managed to stay above $68,000. However, a prominent crypto analyst on the social media platform X has raised concerns about the sustainability of this price level. This has left many investors questioning whether this potential correction is a mere hiccup or a significant shift in the recent bull run resurgence.
Analyst Predicts Brief Bitcoin Price Correction – What’s Next?
In a recent post on X, crypto analyst Ali Martinez presented an intriguing outlook for the Bitcoin price, suggesting that the premier cryptocurrency might be headed for a short-term correction. According to the analyst, the “Tom Demark” (TD) Sequential indicator has flashed a sell signal on the Bitcoin daily chart.
What is the TD Sequential?
The TD Sequential is a technical analysis indicator employed to pinpoint potential points of trend exhaustion and price reversals. This tool consists of two main phases: the TD Setup phase and the TD Countdown phase.
The Setup phase involves nine candles with the same polarity (bearish or bullish). In a bullish Setup, the starting number “1” is assigned to a candle closing higher than the close of the candle four periods prior. Conversely, a bearish Setup is characterized by assigning “1” to a candle that closes lower than the close of the candle four periods prior.
A potential reversal point is identified when the TD Sequential indicator plots a figure on the top or bottom of a candle within a bullish or bearish trend.
As illustrated in the chart above, the number “9” has just appeared on top of a candlestick on the Bitcoin daily chart, signifying the completion of the Setup phase. Given that Bitcoin’s price was initially in an upward trend, it seems that the flagship cryptocurrency is poised for a brief correction lasting a few days.
Recently, there has been significant discussion about the Bitcoin price potentially revisiting and even surpassing its current all-time high. However, Martinez advised investors to anticipate a short-term pullback in the Bitcoin price “before higher highs.”
Bitcoin Price Overview
At the time of this writing, the price of Bitcoin stands at approximately $68,272, reflecting a modest 0.5% dip in the past day. According to CoinGecko data, the premier cryptocurrency has gained nearly 9% in the last seven days.