The Tom Demark (TD) sequential indicator has predicted the Bitcoin crash to $3,600 back in March, when the dominant coin plunged in what was known as the “Black Thursday” on the crypto markets. Now, the indicator flashed again, showing that Bitcoin BTC could crash again this month.
This is a fairly complex indicator in the Bitcoin news and one that signals “sell” from a unique perspective. In mid-February, for instance, when the cryptocurrency rose to its yearly high to $10,500, the TD indicator presented a sell signal in the form of a green nine candlestick. Following the bearish formation, BTC went through a bearish impulse and plummeted over 60% in a very short time frame.
The TD Sequential Index was also able to accurately predict that Bitcoin BTC was reaching an overbought territory on March 26 and April 8. After the signal flashed, the flagship cryptocurrency plunged by nearly 13.5% (on March 26) and 12.5% (on April 8). Now, the sequential indicator is in the cryptonews again, suggesting that Bitcoin is poised to correct but the bearish formation can also be noticed in the Ethereum and XRP charts.
According to many analysts, the Bitcoin market is bound for a retracement and the BTC news now show that while the cryptocurrency enjoyed an impressive rally over the past three days and surged by more than 20% in its value, things could change soon.
Bitcoin BTC could go downwards despite the growing optimism and May halving which is approaching in less than two weeks from now. In fact, the TD indicator may be the last line of correction before a new stimulation following the May Bitcoin halving.
The TD Sequential index presented a sell signal on the daily chart of Bitcoin (BTC). It emerged as a green nine candlestick which forecasts a one to four candlesticks correction before the continuation of the uptrend.
On the downside, the most significant support for Bitcoin (BTC) is now placed at $8,500. Below that, the $8,000 level acts as solid support at these times. The Ethereum and Ripple prices are still at risk and could correct to $194 and $0.18 if this indicator proves right, respectively.
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