Bitcoin recently exhibited a negative signal, which ultimately did not result in a significant decline.
Based on past data, it is suggested that in a relatively short period of one month, BTCUSD may have a technical failure and maybe establish a new record peak, with a projected value of $85,000 per coin. There are several reasons for this.
The phenomenon of bullish breakouts resulting from failed bearish technical indicators.
Within the field of technical analysis, several patterns are commonly recognized as exhibiting distinctively bearish or bullish characteristics. As an illustration, the ascending triangle is commonly seen as a pattern that has a bullish bias, yet its upward breakout occurs in just 63% of instances. However, the remaining 37% of the data exhibits a bearish pattern, deviating from the established trend.
The bearish or bullish nature of a pattern may be significantly influenced by the arrangement of orders and stop losses on both sides of its trend lines. Consequently, a failed bullish pattern might have a highly negative outcome, and conversely, a failed bearish pattern can have strong bullish characteristics. Upon further analysis, it can be observed that the pattern had a clear bullish trend, which may have enticed further long-side positions that were subsequently compelled to liquidate at lower levels.
In recent times, the price of Bitcoin exhibited a bearish TD9 sell setup on the weekly TD Sequential indicator. Nevertheless, there was no significant subsequent rectification. When such an event does place, it frequently leads to a significant movement in the opposite direction of the given signal.
In a more concise manner, the unsuccessful TD9 sell setup may potentially indicate a substantial upward movement. The potential upper limit of the price and the rate at which it may increase might be astonishing.
The market timing tool suggests the possibility of a Bitcoin rally to $85,000.
The TD Sequential is a market timing indicator that was devised by Thomas Demark. The TD9 setup or TD13 countdown refers to a distinct pattern of candle formations that indicate the potential depletion of a trend.
In 2020, when this identical signal had a failure, Bitcoin saw a significant surge, surpassing its previous record and reaching new all-time highs above $20,000. The asset had a significant increase of 143% during a four-week period subsequent to the occurrence of the signal. Furthermore, the asset's overall growth amounted to almost 300% toward the conclusion of the observed period.
If a similar magnitude movement were to occur following the aforementioned unsuccessful TD9 sell setup, it is projected that the price of Bitcoin would potentially reach $85,000 by the conclusion of December. Exceeding the existing record peak by an additional 300%, the leading cryptocurrency BTCUSD would have a valuation of $200,000 per unit.
The indicator also includes TDST support and resistance levels, which contribute to the achievement of lower pricing. The levels fluctuate in accordance with the completion of each TD setup. The recent configuration resulted in an increase in TDST floor price support, rising from $10,000 to $25,000. Consequently, the likelihood of BTCUSD trading below this price in the future has been reduced.
