A recent chart analysis has brought Bitcoin into the spotlight with a potential buy signal, suggesting short-term gains could be on the horizon.
Let’s see the charts!
Well known crypto analyst Ali has noted a critical buy signal on Bitcoin’s hourly chart, identified using the so-called TD Sequential indicator.
This tool, created by Tom DeMark, is known for its accuracy in predicting price reversals by examining points where trends become exhausted.
And now, the detection of this signal is generating buzz among investors. The TD Sequential indicator works in two phases, the setup and the countdown.
The setup phase involves nine consecutive price bars closing progressively higher or lower, based on the trend direction.
Once this setup is complete, the countdown phase starts, looking for a sequence of 13 bars that continue the trend but must close beyond the high or low of two bars prior.
Completing this countdown usually indicates that the trend is exhausted and a reversal is likely.
On Bitcoin’s hourly chart, this pattern has been completed, hinting at a possible price increase soon, so not a surprise traders are excited.
Buy signal, sell signal
Ali highlighted this on social media, saying, “The TD Sequential presents a buy signal on the #Bitcoin hourly chart, predicting a potential rebound of one to four candlesticks for $BTC!”
This analysis comes as Bitcoin faces downward pressure, having recently dipped below $67,000, a level not seen since late May.
Currently, Bitcoin is trading at around $66,855, reflecting a 3.7% decline after the US FOMC meeting.
This drop has led to much discussion among investors and analysts about what might come next.
They’re coming to pump the price and hoard Bitcoin. But there is barely any Bitcoin left.
Samson Mow, CEO of Jan3 and a prominent Bitcoin supporter, added to the discussion with a post on his social media account, where he shared an optimistic forecast, suggesting Bitcoin’s price could potentially reach $1 million per BTC.
Mow’s post included a visual diagram comparing the current market capital with the amount of Bitcoin available and mineable in the future.
The illustration highlighted the scarcity of Bitcoin in relation to the huge amount of capital that could purchase it, emphasizing its potential value increase.
Bitcoin proponents say that now might be a good time to consider buying Bitcoin, regardless of the indicators’ prediction of an imminent price rebound holds true, or not, because the long-term value due to Bitcoin’s scarcity could make it a good strategic investment.
