Bitcoin price this week broke up from consolidation and surged over 15% to $11,400 at the high. On one specific timeframe, the recent push through resistance has triggered a signal that the uptrend may be exhausted and therefore coming to an end.
However, in the past, the cryptocurrency kept on climbing by as much as 220% before the bullish momentum came to a halt. With this supposedly bearish signal triggering yet again, will it lead to a pullback or continued pump?
Bear Signal Triggered On Bitcoin 3D Charts, Uptrend Nears Point of Exhaustion
Technical analysis involves reviewing the price charts of various assets. Charting cryptocurrencies like Bitcoin is no different and relies on various indicators or patterns to provide signals or insight that influences strategy.
Not only do crypto analysts check current price action for such signals, but they review past instances certain signals were triggered and compare them to active market conditions. Historic recurrence is a very real phenomenon, and markets are said to be cyclical by nearly every top analyst ever.
Assets like gold, currencies, or even some major stock indices have been trading for more than a century for analysts to compare against. Bitcoin and other crypto assets, however, have roughly ten years or less.
Due to their scarcity and underlying fundamental differences, such as the relationship between miners and an asset’s decentralization, they are even more difficult to make sense of.
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Still, several techniques have been used with much success. In the cryptocurrency market, few indicators are considered as accurate as the TD Sequential indicator.
The tool was developed by market timing expert Thomas Demark, who utilized it to spot when reversals may occur or when trends reach a point of exhaustion.
A 9 count on the indicator, results in a buy or sell setup, depending on the sequence. A countdown to 13 points to a trend becoming exhausted, or yet another point of a potential reversal.
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