Skip to content Skip to sidebar Skip to footer


If you’ve followed the Bitcoin and cryptocurrency technical analysis space, you likely know of the TD Sequential.

The indicator, created by Point 72 consultant and well-known investor Tom DeMark (hence TD Sequential), has long been a staple of the trading suites of many investors, giving these traders a way through which they can determine where assets have found local tops and bottoms. Specifically, it has become popular with Bitcoin traders, with Wall Street veteran turned BTC proponent Tone Vays and other popular analysts actively promoting the time-centric indicator.

Related Reading: Under 6.8m Bitcoin Changed Hands in the Past Year: Does it Indicate Positive Sentiment?

Demark, who has been largely quiet on cryptocurrencies due to his lack of online presence, recently broke his silence on Bitcoin, taking to Bloomberg to explain his indicator and talk about his expectations for the future price of BTC.

Where Will Bitcoin Go Next According to Top Analyst?

Tom DeMark recently made an appearance on Bloomberg to talk markets. While the segment involved discussions around other subject matters, like a potential topping pattern put in by the S&P 500 and American equities as a whole, the host of the segment asked DeMark about Bitcoin due to his indicator’s popularity in the space.

In his monologue about the matter, DeMark quipped that Bitcoin remains in an “eight countdown,” which he claims shows that the “risk for downside” in the Bitcoin market remains “quite a bit, even from here.”

On the matter of exact targets, he noted that his firm, DeMark Analytics, is currently charting a move in the BTC price to $6,308 — some 15% lower than current prices — with a current max downside of $5,294 in a crash-like scenario.

A move to $5,300 from current prices would be a near-30% drop from the $7,400 level, which Bitcoin sits today. This would line up with a prediction from popular trader Mac, who, as noted by NewsBTC in a previous report, believes the final bottom of this bear move will be close to $5,100. Mac argued that this will be the “ultimate bottom” due to a confluence of key supports: the double-month volume-weighted average price, a “price inefficiency fill” level, and the 200-week moving average.

So why should DeMark’s calls be given heed?

Well, the investor also took some time to explain the historical accuracy of his indicator: he revealed that a 13 candle, which signifies a strong trend reversal, was registered by the TD Sequential when Bitcoin hit $20,000 in December 2017, and that another 13 candle, was seen when BTC cratered to $3,150 on December 14th. What’s more, a 13 candle was printed at the $14,000 top seen in June of this year.

In other words, his indicator managed to call the two most important macro levels of Bitcoin’s entire history thus far, giving him a great track record, especially by this market’s standards.

Related Reading: Strong NYSE Composite, Dow Jones May Give Bitcoin a Boost Into 2020
Featured Image from Shutterstock

Nick Chong , 2019-12-03 14:00:14

Source link

Leave a comment

NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.


While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

Featured Image from Shutterstock


Nick Chong , 2019-11-10 12:00:38

Source link