The crypto market is at a pivotal moment. A new uptrend in Bitcoin was starting prior to the Black Thursday selloff, and now prices are consolidating below a critical level.
A breakout all but guarantees a new bull market for cryptocurrencies. And now, one of the most accurate tools used in crypto technical analysis is signaling that a new uptrend is here.
A New Cryptocurrency Bull Market May Finally Be Here
Bitcoin price continues to trade sideways, following a V-shaped recovery from the Black Thursday bottom below $4,000.
Prior to that catastrophic collapse a new indicator developed by Bitcoin expert Willy Woo, shows that the crypto asset was ready for a new bull market.
Related Reading | Bitcoin Bull Run Was Here, But White Swan Pandemic Put It On Lockdown
What he calls a “white swan” event by way of the pandemic, got in the way and set the cryptocurrency back a couple of months.
However, another indicator that’s been used with regular success across the cryptocurrency market for spotting important reversals, is now pointing to a new, long-term uptrend.
BTCUSD 6-Month Price Chart: TD Sequential Signals New Uptrend In Bitcoin
The TD Sequential indicator is a technical analysis tool created by market timing expert Thomas Demark. The tool is used for trend recognition, as well as for watching for a sequence of candles that could result in a reversal.
The TD Sequential was popularized in the crypto industry by controversial internet personality Tone Vays. Love him or hate him, the TD Sequential has been extremely accurate.
It called Bitcoin’s top at $20,000, and again at $14,000, and in February 2020 ahead of Black Thursday. It also signaled a reversal just ahead of the asset bottoming the last two Decembers. It has also worked well with altcoins, like Ethereum, Chainlink, and more.
Related Reading | Bitcoin Holds Bullish On Key Technical Indicator, But Trend May Be Turning
Reversals are likely when the tool reaches a 9 or 13 on a specific candle sequence. If the sequence is broken before the countdown has finished, the count starts all over again.
Given its accuracy, crypto traders have come to give it a lot of weight when making decisions or planning a trading strategy. But the tool can also be used for trend recognition.
Brave New Coin Bitcoin Liquid Index 6M Price Chart | Source: TradingView
A green 1 candle signals the start of a new upward trend. This green 1 signal has now appeared on the 6-month timeframe on BTCUSD price charts.
Higher timeframes hold the most significance in technical analysis, but such long timeframes aren’t often looked at.
If Bitcoin price can hold at current levels for the next few hours, the 6M candle will close and the green 1 will confirm. If it does, it could be the start of another long-term uptrend in Bitcoin and crypto.
Credit: Source link
