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Bitcoin Paints Two Bearish Signals as Price Holds $13K; What’s Next?

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Bitcoin Paints Two Bearish Signals as Price Holds $13K; What Is Next?

“A TD Sequential green”9″ (however, imperfect) on a daily time frame and a classic Doji candle at the exact same time. Typically, it’s followed by a decrease in price.”
The opinion rippled elsewhere as more dealers spoke in favor of a bearish reversal. Daytrader Nico, for instance, tweeted this Tuesday concerning the TD9 Sequence indicators from the recent history, confirming how every one of these followed a complete reversal from their previous trends.

Bitcoin is looking to confront a period of sell-off as its daily chart reveals the presence of two historically accurate bearish signs.
BTC/USD was trading at $13,135 at the time of this writing. The analyst expects it to drop to $12,500 at the next leg followed by a dip towards $14,000.

Bitcoin was in a strong upside trend before it confirmed the TD9 Sequential and Doji indicators on its daily chart. The cryptocurrency rallied by almost 35 percent as it broke above crucial resistance levels, the newest being $13,000. Nevertheless, the stated signs suggest that the rally is fizzling.

Global analysts have cautioned about the uncertainty ahead of the US presidential election on November 3. It’s because of a long-delayed financial relief package by the US Congress that, as House Speaker Nanci Pelosi and Treasury Secretary Steven Mnuchin believe, will not be finalized prior to the election day.
Analysts expect the next downtrend to be weaker, given the long-term principles led by the prospects of the next stimulus package, as well as the Federal Reserve’s present expansionary policies, including ultra-low rates of interest and infinite bond-buying programs.
Bitcoin trade setup, as presented by Nico. Source: BTCUSD on TradingView.com

cryptocurrency, Bitcoin, BTCUSD, XBTUSD, BTCUSDT

cryptocurrency, Bitcoin, BTCUSD, XBTUSD, BTCUSDT

Bitcoin completes the TD9 Sequence cycle as it also paints a Doji candle. Source: BTCUSD on TradingView.com
An absence of money liquidity expects to drive investors into the protection of cash and cash-based instruments. That, in turn, could hurt assets like Bitcoin who have so far rallied strongly against the first coronavirus stimulus package of about $3 trillion, declared in April 2020.

Meanwhile, the second sign that predicts a downtrend in the Bitcoin marketplace is Doji. It reflects a candlestick whose opening and closing prices are almost precisely the same. Traders treat Doji as a trend reversal indicator.
“The stronger the rising trend, the weaker the pullback from that’9,”’ stated the pseudonymous analyst.

The Double-Trouble Setup

The first of these signals is TD9 Sequential, a combination of nine successive candle formations in a particular direction, followed by a reversal. In layman terms, TD9 signifies a turning point in the prejudice of an advantage or an indicator; it is popular among stock and commodity traders.
“Structure [is] similar to mid-October where it will range a bit more around 13k (yellow trendline should hold). A wick into the red area is also something that may happen because of US elections ”

Published at Tue, 27 Oct 2020 07:57:07 +0000


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