The recent Bitcoin uptrend is the strongest yet, and although the momentum has increased significantly for some time, a threatening sell-signal has emerged. And while the cryptocurrency is showing little sign of slowing down, the top sniping signal that called the peak of 2019 perfect is back.
Will this sequence-based signal lead to an almost error-free market timing again? Or, bulls are way too strong and the latest signal is just another in a series of failed setups based on the usually accurate indicator.
Bitcoin price action triggers unorthodox timeframe from TD9 sales setup
Technical analysis has not worked very well lately to predict Bitcoin’s price development. Instead, the upward momentum was driven by strong fundamentals in the chain and a distinct lack of available supply.
Related reading | Bitcoin overtakes the Russian ruble and is closer to the top ten global currencies
As soon as the trend became apparent in higher time periods, it was only optimistic for Bitcoin. The leading cryptocurrency by market capitalization has seldom been corrected, and when it has, it has failed to retreat from past cycles.
But could the first major correction finally come? The TD Sequential Indicator developed by Market Timing Whiz Thomas Demark signals this.
TD 9 has most of the last major peaks | named source: BTCUSD on TradingView.com
The TD9 sales setup was released in an underutilized timeframe: the two week long. In technical analysis, higher timeframe signals give the strongest results.
Weekly sales setups with the indicator still worked like a charm until recently, while daily sales setups have failed since breaking $ 10,000.
Timing the top of the current upward trend in the crypto market
However, within two weeks, the signal has still produced some of the largest corrections to date. The most recent was the slight correction from over $ 12,000 to under $ 10,000 just before the massive uptrend kicked in.
Related reading | Executing Bitcoin: Passing Hal Finney’s torch on to Jack Dorsey
Before that, however, this led to a medium-term “peak” that made the signal all the more threatening. But as in other time periods, TD9 sales setups often fail in the Bitcoin bull markets.
Results during the bull markets are mixed but still somewhat effective Source: BTCUSD on TradingView.com
Upon closer inspection of the last major cycle “Top” at $ 20,000, a TD9 sell setup appeared two full candles before the bear market began. If this cycle coincides with the last one, there could be little more than a month left in the current uptrend.
The first major bull market peaked at the end of 2013 with a perfected TD 8 and 9 setup and put the cryptocurrency into the longest crypto winter ever.
What do you think? Is it about Bitcoin’s uptrend? Or does the once precise signal fail in a further period?
Featured image from deposit photos, charts from TradingView.com
