Bitcoin Forms Death Cross and TD-9 Sell Signal: Ready for the Shock?
In a new post on X, analyst Ali discusses two signals that have recently formed in the Bitcoin 12-hour chart. The first is a "death cross," which occurs when an asset's short-term simple MA (SMA) fall break its long-term SMA. Regarding the death crossover, the 50-day and 100-day MA make up for the short-term and long-term trend lines. Historically, this pattern has been considered a falling signal, and once the pattern is confirmed, the price may be affected.
Another signal for the emergence of Crypto Assets involves the Tom Demark (TD) sequence. This indicator is widely used to find the location of possible tops and bottoms in the price of any asset.
TD Sequential has two phases: "Setup" and "Countdown". Once the asset has gone through nine candles of the same polarity, the first stage, the setup, is complete. After these nine candles, the price may have reached a possible reversal point. Of course, if the candle in the setup pattern is red, then the signal will be a buy signal, while if the current trend is bullish, the reversal will be downward.
Once the setup is complete, the countdown phase begins. This phase works very similarly to the setup, except that the candles count thirteen instead of nine. Once the countdown is complete, it can be assumed that the item has reached another potential top/bottom.
Now, Figure 1 is a chart shared by Ali that highlights how these two technical analysis patterns have recently been witnessed in the Bitcoin 12-hour price. As shown in the chart, the Bitcoin 12-hour price first showed a death cross pattern, and the 50-day moving average moved below the 100-day moving average. Then, it observes the completion of the TD order setting, and the indicator indicates a reversal in the downward direction.
Bitcoin has been falling since this double falling pattern emerged, suggesting that these signals may have taken effect. "If BTC fall breaks $63,300, then it could fall to $61,000 or even $59,000,000," the analyst said. ”
Looking at the current price of the Crypto Assets, a drop to the first target would imply a fall of 4.6%, while a drop to the latter target would imply a fall of almost 8%. So far, Bitcoin has managed to prevent a fall below the $63,300 target listed by analysts, and its Fluctuation is currently around $64,000.
(Source: Keshav Verma)
