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The buy signal appears on the hourly Bitcoin (BTC) chart.
Arman Shirinyan
Bitcoin was experiencing outflows, but thanks to this buy signal, things may finally change
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On the hourly chart of bitcoin, the TD Sequential indicates a buy signal, suggesting that BTC could rise by one to four candlesticks. This is often used in technical analysis to identify possible turning points in asset prices.
The indicator, created by Tom DeMark, finds trend exhaustion points by examining a sequence of price bars. There are two phases in the indicator: the setup phase and the countdown phase.
Nine price bars in a row are needed for the setup phase, each closing either up (in a downtrend) or down (in an uptrend). The countdown phase, which follows if this setup is successful, looks for a string of 13 bars that close lower (in a downtrend) or higher (in an uptrend) than the previous two bars .
When the countdown ends, it usually indicates that the trend has reached its limit and a reversal is about to occur. TD Sequential has launched a buy signal on the Bitcoin hourly chart, potentially predicting a price reversal. This signal can provide a short-term break from the current downtrend, which indicates a possible price increase in the next one to four hourly candles.
The price of Bitcoin has dropped recently for a variety of reasons. First, liquidation clusters were a major factor. A cascading effect was observed in the price decline due to large sales and forced liquidations of leveraged positions. The downside pressure was exacerbated by large clusters of liquidations sitting at $72,000-69,000 and $66,000.
Additionally, the move away from US Bitcoin ETFs has contributed to the BTC price action we are seeing now. These ETFs saw a net outflow of $64 million last Monday, breaking a 19-day streak of inflows. The price of Bitcoin was further pressured by this shift in investor sentiment from accumulation to selling.
About the author
Arman Shirinyan
Arman Shirinyan is a trader, cryptocurrency enthusiast and SMM expert with more than four years of experience.
Arman firmly believes that cryptocurrencies and blockchain will be in constant use in the future. Currently he focuses on news, articles with in-depth analysis of crypto projects and technical analysis of cryptocurrency trading pairs.