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TD 9 Sell Triggers As Bulls Push Bitcoin Higher

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Tony Spilotro



Bitcoin price action has now spent a total of nine days in a short-term uptrend, capping off a bounce back to 2021 highs. The sequence of mostly green candles has now triggered and perfected a TD 9 sell setup on daily timeframes. However, the signal has repeatedly failed to yield results since the more dominant high timeframe uptrend began. Is this time different? Or is this yet another bear trap layered into a bull flag that could push Bitcoin to more than $75,000 per coin? Here’s what technical analysis suggests.

TD 9 Sell Setup Perfected: Bear Trap Or Bulls Beware?

Bitcoin is back near $40,000 and the highs it trade at to start the year, but bulls still have hurdles to pass before rocketing to new highs. Sellers have stepped in for the first time since Black Thursday causing a pitstop for consolidation.

RELATED READING | BULLISH BITCOIN IGNORES THE DOLLAR’S DRAMATIC REBOUND

The leading cryptocurrency by market cap has made a run for the top of the trading range, but is thus far being held back by resistance around $38,000. As it struggles with resistance, a TD 9 sell setup has not only triggered, but the signal has now perfected as well.

bitcoin bear trap td 9

TD 9 sell setup triggers at top of bull flag channel | Source: BTCUSDT on TradingView.com

The TD Sequential indicator designed by Thomas Demark is used to time market tops and bottoms and for years worked like a charm with sniping trend reversals in cryptocurrencies. Traders who have since relied on the tool could be taking a short position based on the perfected setup.

Bitcoin Bull Flag Targets $75K BTC If Channel Breaks Up

The theory behind the tool is that after a sequence of price increase, the trend should be approaching a point of exhaustion and is near a point where a turnaround is probable.

The problem for those bearish on Bitcoin or are taking short positions based on the indicator, is that it has repeatedly failed since the breakout from $10,000, and the only setup that’s been “perfected” is a bear trap.

bitcoin bear trap td 9

Repeated TD sell signals have failed, is this time really different? | Source: BTCUSDT on TradingView.com

The TD 9 sell setup appears at the top of a bull flag structure. If valid and the pattern confirms with a breakout upward, the potential target within weeks could take the price per BTC to as high as $75,000.

RELATED READING | CAPITAL MANAGER EXPECTS NEW BITCOIN ALL-TIME HIGH “WITHIN DAYS”

If the sell setup is valid instead, a fall to the bottom of the bull flag channel is possible, and a revisit to range lows. Will bears fall for the trap, or is the trend about to change for the time being?

Featured image from Deposit Photos, Charts from TradingView.com



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Bitcoin

Traders speculate that Bitcoin’s price may continue to trade sideways for now

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Cointelegraph By Benjamin Pirus

Bitcoin’s price has declined in recent days. While it has rebounded from its weekly lows, the asset’s trajectory remains uncertain says CryptoWendyO, a crypto trader on Twitter.  

“The daily timeframe is not looking great as we are having trouble sustaining $50K,” she told Cointelegraph on Friday. “I am feeling like we will get a run to $51.6[K].”

She added:

“From there I would be cautious as rejection could lead back to the $50K -$45K range. A break down there could be a swift wick to $42-38K with a glorious recovery. Invalidation would be a sustained consolidation at $52K.”

After hitting record highs of approximately $58,360 in February, Bitcoin (BTC) dropped down to roughly $43,015 in subsequent days, based on TradingView data. The asset then rebounded up to about $52,660, before continuing its downward price action below $50,000. Bitcoin is trading at roughly $49,020 at time of publication.

Cheds, a trader on Twitter holding his CMT level I certification, expects “more consolidation from BTC above that key 42k level,” he told Cointelegraph on Friday. He also tweeted a chart of his range expectations.

“The big question is if the recent 27% correction is enough to bring us to a new high,” Cheds said. “In the meantime we will watch a tightening range on the daily of lower highs and higher lows.”

A number of technology stocks have also suffered price decline recently.