A pattern in the price chart of Bitcoin’s 2-month period has led an analyst to explain how Bitcoin may drop as low as $40,600.
Bitcoin has seen a TD sequence sell signal on its 2-month price
The new post Ali Martinez, an analyst on X has talked about a Tom Demark (TD) Sequential Signal that formed on the Bitcoin price for 2 months. In technical analysis, the TD Sequential indicator is used to identify possible price reversals.
In this indicator, there are two phases. The first setup involves counting candles that are the same colour (either red or green). Once the candles reach nine, it is safe to assume that an asset has reached a turning point.
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For example, if all the candles leading to the completion of the setup were green then the TD Sequential gives a buy signal. Red candles may also indicate a possible bottom.
The second phase of this indicator begins once the initial setup has been completed. The countdown is similar to setup with one major difference: candles count up to 13 instead of 9. The asset can be considered at a potential new top or bottom after these thirteen candles.
Bitcoin recently completed a TD Sequential Phase of the first type. The analyst shared this 2-month chart, showing the same signal.
According to the graph above, Bitcoin’s 2-month price recently completed a TD Sequential with nine bright green candles. This suggests that Bitcoin may have reached a top.
BTC’s been active since the BTC Signal appeared way downThe price of the stock is below $57,000. This pattern may be already having a bearish impact.
Martinez identifies the level of support at $51,000 as a possible limit to how low Bitcoin can fall. This is the Fibonacci Retracement of 0.236 from the BTC recent top.
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Fibonacci Retracement The Fibonacci sequence is used to determine the levels. Dividing each number in the Fibonacci Series by the following numbers will produce ratios which are constant throughout.
The analyst says that it’s possible for Bitcoin to find support in the next important ratio. However, if that support level of $51,000 is breached then the cryptocurrency may end up falling to as low as $40,600 which corresponds with the Fibonacci retracement level of 0.382.
BTC’s price will have fallen by over 28% if it does reach this level. The asset’s future trajectory will be decided by the current price.
BTC Price
Bitcoin’s latest price decline has continued in the past 24 hours, with its current value of $56,600.
Charts and image are from TradingView.com.
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Source: www.newsbtc.com
