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Buy Signal Appears on Hourly Bitcoin (BTC) Chart

Tue, 11/06/2024 – 12:33

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On the hourly chart of Bitcoin, the TD Sequential indicates a buy signal, suggesting that BTC may rise by one to four candlesticks. This is often used in technical analysis to spot possible asset price turning points.

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The indicator, which was created by Tom DeMark, finds trend exhaustion points by examining a sequence of pricing bars. There are two phases to the indicator: the setup phase and the countdown phase. 

Nine price bars in a row, each closing higher (in a downtrend) or lower (in an uptrend), are needed for the setup phase. The countdown phase, which follows if this setup is successful, searches for a string of 13 bars that close lower (in a downtrend) or higher (in an uptrend) than the two bars that came before. 

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When a countdown is finished, it usually indicates that the trend has reached its limit and that a reversal is about to occur. The TD Sequential has flashed a buy signal on the hourly Bitcoin chart, potentially predicting a price reversal. A short-term break from the current downward trend may be provided by this signal, which points to a possible price increase over the next one to four hourly candlesticks. 

The price of Bitcoin has recently dropped for a number of reasons. First, liquidation clusters have been a major factor. A cascading effect has been seen in the price decline due to large sell-offs and forced liquidations of leveraged positions. The downward pressure was exacerbated by large clusters of liquidations that sit at $72,000-$69,000 and $66,000. 

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Furthermore, departures from U.S. Bitcoin ETFs have contributed to the price action of BTC we are seeing now. These ETFs experienced a net outflow of $64 million on a recent Monday, breaking a 19-day run of inflows. The price of Bitcoin has been further pressured by this change in investor sentiment from one of accumulation to selling.

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