Bitcoin recently gave a bearish signal but failed to produce a significant pullback. Historical data suggests that in a month, BTCUSD could reach a new all-time high of $85K per coin. The failed bearish signal could result in a massive move higher, potentially shocking investors. The TD Sequential market timing tool hints at a Bitcoin rally to $85K by the end of December.
Our analysis of the situation
Introduction:
Cryptocurrency enthusiasts have had their fair share of twists and turns when it comes to Bitcoin. Just when it seemed like a bearish signal was about to bring the market down, history has shown us that this might very well be the setup for a exhilarating bullish breakout. Buckle up, because there's a chance Bitcoin could hit an all-time high of $85K per coin in just a month. How's that for a turn of events, huh?
Failed Bears, Thriving Bulls:
In the world of technical analysis, patterns play a significant role in predicting market movements. Take, for instance, the ascending triangle pattern. Typically considered a bullish-leaning pattern, it breaks upwards only about 63% of the time. The remaining 37%? Well, it goes the other way and breaks down bearish.
But here's where it gets intriguing. The way orders and stop losses are stacked on either side of a pattern's trend lines means that a failed bullish pattern can result in a remarkably bearish outcome, and vice-versa. So, when a visibly bullish pattern fails, it might attract long-side positioning that ends up being forced to unwind lower.
The TD9 Signal and Bitcoin's Rally:
Recently, Bitcoin price gave us a bearish TD9 sell setup on the weekly TD Sequential chart. The interesting part is that no significant correction followed. This often leads to a substantial move in the opposite direction of the initial signal. In simpler terms, the failed TD9 setup could actually propel Bitcoin to an astonishing rally.
Market Timing Tool Predicts an $85K Finish Line:
Enter the TD Sequential, a market timing indicator developed by the renowned Thomas Demark. The TD9 setup, or TD13 countdown, denotes a specific sequence of candles that signals trend exhaustion. When this same signal failed back in 2020, Bitcoin skyrocketed to new all-time highs above $20,000 and beyond.
Should we witness a similar magnitude move following this failed TD9 sell setup, Bitcoin price could reach $85,000 by the end of December. Talk about a year-end surprise! In fact, a further 300% increase from the current all-time high would put the top cryptocurrency at an astounding $200,000 per coin.
Support and Resistance Levels:
But it's not just the rally that's noteworthy. The TD Sequential indicator also provides us with TDST support and resistance levels. With each completed TD setup, these levels ebb and flow. Thanks to this latest setup, the TDST floor price support has elevated from $10,000 to $25,000, making it less likely for BTCUSD to drop below that price again.
Conclusion:
So, whether you're a seasoned investor or a casual observer of the cryptocurrency market, this failed bearish signal in Bitcoin has given rise to a tantalizing possibility of an unstoppable bullish breakout. With a potential journey to $85,000 per coin by the end of the year, Bitcoin seems to be ready to surprise us all. Strap in and embrace the excitement because, with Bitcoin, anything is possible.
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Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
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