Bitcoin has continued to face a slump in trading price, struggling to stay above $30,000 and currently being sold at around $27,000 per coin. The sentiment in the cryptocurrency market suggests that BTC is already at its low and could experience another drop. However, some analysts believe that a perfected TD-buy setup may indicate that BTC has reached its pullback and is ready to bounce back.
The past few weeks have seen the cryptocurrency community riding an emotional rollercoaster with the bullish rally of Bitcoin surprising the bears. Although the bulls were euphoric about BTC’s rise above $30,000, the bears were quick to take advantage of the opportunity and buy in while the bullish traders were blinded by the recent gains.
A perfected TD8-buy setup has recently appeared on the daily BTCUSD spot exchange charts. This setup occurs when a new low is reached and a TD9-count is normally required, but in this case, the setup was perfected prematurely. This could mean that there is another low needed to build a TD9, but the TD8-count might be enough.
The TD Sequential is a market-timing tool developed by Thomas Demark that counts a sequence of upward and downward candles until the sequence is complete and the count reaches 9. If the TD9 setup does not generate the expected reversal, then a countdown to TD13 begins. A TD13 signifies trend exhaustion, and both the TD9 and TD13 do not necessarily guarantee a reversal, but they improve the probability when they occur on a key level.
BTCUSD has performed well on the buying side of the daily charts since it reached its local low point. Past perfected TD setups have resulted in immediate upward reactions, but it is important to note that the previous signals were all TD9s and not TD8s.
If BTCUSD can ward off a significant downward trend and begin buying at this signal, it could indicate to the market that the correction is over, and the bull run will continue.
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