Bitcoin’s price is on the verge of collapse, putting the market and all its participants in an extreme state. A reliable bottom signal is here to rescue the day, much in the same way a superhero would do.
This is an in-depth look at the signals that were seen twice at the bottom of the crypto bear markets, once on Black Thursday and again today.
Bitcoin price: bottoming sequence initiated?
As with everything else, markets are very cyclical. Although cryptocurrencies can go through winters that are cold, when the temperatures rise, they become hotter than ever.
There are two kinds of cycles. One is fixed and one is sequences. These can also be called linear or non-linear. For example, fixed cycles might focus on how prices may react to the halving. Different sequences exist.
Related Reading | Finding Fibonacci: Is Bitcoin Beginning A “Golden” Recovery?
Instead, sequences must fulfill certain conditions. Fibonacci sequence is an example of a sequence in which the next number within the sequence always sums the two preceding numbers.
Thomas Demark is the market timing expert who created the TD Sequential indicator. It works by a sequence of close candles that, when followed, activates a buy/sell setup.
This is worth noting. One of the best buy signals from the TD Sequential could have been the Bitcoin bottom.
Is the Signal Caller to the Bottom Six Out of Six Times?Source: BTCUSD tradingview.com | Source: BTCUSD on TradingView.com
No Need To Fear: TD Sequential Indicator Is Here
The TD Sequential indicator has swooped in to save the day with a “TD 9” buy setup on the 3-day time frame. The chart above has been cleaned up to remove bearish signals and “TD 13 buy countdowns” that haven’t yielded nearly as dramatic results.
This chart, which has only been active five times in total since the bear market bottom, is what is left. Each signal indicated a Bitcoin bottom, either short- or longer-term.
Related Reading| Point & Figure: The Chart That Makes Bitcoin Support Cut And Dry
The bear market bottom and the subsequent retests of lows were significant moments when the TD 9 buy set-up was visible. Although there were less powerful signals during August 2019 and December 2019, they both led to new lows. However, it is not difficult to see that a rebound occurred. Fear was particularly prevalent in crypto during each of these moments.
Bitcoin is now more than 1000% higher today than it was in March 2020. What kind of return on investment might the latest signal bring?
TD 9 during the 3-day in #Bitcoin. This is also known as the Black Thursday bottom or bear market bottom. This signal also shows that it is up over 1,000% from the previous time. You can sell your coins now. pic.twitter.com/ALL5jkFmQm
— Tony “The Bull” Spilotro (@tonyspilotroBTC) December 9, 2021
Follow @TonySpilotroBTC on Twitter or join Telegram from TonyTradesBTCGet daily market insight and expert technical analysis education. Please note: Content is educational and should not be considered investment advice.
Featured image taken from iStockPhoto. Charts from TradingView.com