Bitcoin Forms Death Cross & TD-9 Sell Signal: Brace For Impact?
25 Abril 2024 - 6:00PM
NEWSBTC
An analyst has explained how Bitcoin is forming both a death cross
and TD sell signal, which may lead to potential dips in these
targets. Bitcoin Looking In Trouble As 12-Hour Chart Forms Two
Bearish Signals In a new post on X, analyst Ali discussed two
signals that have recently formed in Bitcoin’s 12-hour chart. The
first of these is a “death cross,” which occurs when an asset’s
short-term simple moving average (SMA) dips below its long-term
SMA. Related Reading: Bitcoin Whales Continue Buying, Now Hold
25.16% Of All Supply Regarding the death cross, the 50-day and
100-day SMAs make up for the short-term and long-term trend lines.
Historically, such formations have been considered bearish signals,
with the price potentially suffering once the pattern is confirmed.
The other signal that has appeared for the cryptocurrency involves
the Tom Demark (TD) Sequential. This indicator is popularly used
for finding locations of probable tops and bottoms in any asset’s
price. The TD Sequential has two phases: the “setup” and
“countdown.” The first phase, the setup, is said to be complete
once the asset has gone through nine candles of the same polarity.
After these nine candles, the price may have reached a likely
reversal point. Naturally, if the candles in the setup’s formation
were red, then the signal would be a buy one, while if the
prevailing trend were bullish, the reversal would be towards the
downside. Once the setup is complete, the countdown phase begins.
This phase works much like the setup, except that candles are
counted up to thirteen instead of nine. After the countdown’s
completion, the commodity may be assumed to have reached another
potential top/bottom. Now, here is the chart shared by Ali that
highlights how signals about both of these technical analysis
patterns have been witnessed in the 12-hour price of Bitcoin
recently: The two signals that the 12-hour BTC price has formed in
recent days | Source: @ali_charts on X As is visible in the graph,
the 12-hour price of Bitcoin first saw a death cross form with the
50-day SMA moving under the 100-day SMA. Then, it observed the
completion of a TD Sequential setup, with the indicator suggesting
a reversal to the downward direction. Since this double bearish
pattern has appeared, BTC has been heading down, suggesting that
these signals may already be in effect. “If BTC falls below
$63,300, brace for possible dives to $61,000 or even $59,000,” says
the analyst. Related Reading: Newbie Bitcoin Whales Hold 2x As Much
As Veterans: What’s Behind This Trend? From the current price of
the cryptocurrency, a potential drawdown to the first of these
targets would mean a decline of 4.6%, while one to the latter level
would suggest a drop of nearly 8%. BTC Price So far, Bitcoin has
managed to prevent falls under the $63,300 target listed by the
analyst, as it currently floats around $64,000. Looks like the
price of the coin has lost its earlier recovery during the past 24
hours | Source: BTCUSD on TradingView Featured image from
Shutterstock, charts from TradingView.com
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