Failed Bearish Signal Could Send Bitcoin To $85K Next Month
November 18 2023 - 11:05AM
NEWSBTC
Bitcoin recently gave a bearish signal, which ultimately failed to
produce a meaningful pullback. Due to the technical failure,
historical data suggests that in only a matter of a month BTCUSD
could set a new all-time high and reach a target of $85K per coin.
Here’s why. Why Failed Bearish Technicals Produce Bullish Breakouts
In technical analysis, certain patterns are considered
characteristically bearish or bullish. For example, the ascending
triangle is a typically bullish-leaning pattern, but only breaks
upward 63% of the time. The other 37%, the pattern breaks down
bearish. Because of the nature of how orders and stop losses are
stacked on either side of a pattern’s trend lines, a failed bullish
pattern can be extremely bearish and vice-versa. Dissecting
further, since the pattern was visibly bullish, it could have
attracted more long-side positioning that is forced to unwind
lower. Related Reading: Technical Analysis For Beginners: Learn How
To Chart Crypto Recently, Bitcoin price gave a bearish TD9 sell
setup on the weekly TD Sequential. However, no major correction
followed. When this occurs, it often results in a sizable move in
the opposite direction of the signal. More simply put, the failed
TD9 sell setup could mean a massive move higher. And how high price
could go and how fast might shock you. Could BTC reach $85K in four
weeks? | BTCUSD on TradingView.com Market Timing Tool Hints At
Bitcoin Rally To $85K The TD Sequential is a market timing
indicator developed by Thomas Demark. A TD9 setup or TD13 countdown
is a specific sequence of candles that signal trend exhaustion.
Back in 2020 when this same signal failed, Bitcoin blasted off to
new all-time highs above $20,000 and then some. It rallied 143% in
the four weeks following the signal and over 300% more in total
when it was all said and done. Related Reading: Select This Chart
Makes It Clear: Bitcoin Is Bullish This Chart Makes It Clear:
Bitcoin Is Bullish If the same magnitude move followed this
recently failed TD9 sell setup, Bitcoin price would reach $85,000
by the end of December. Another 300% beyond the current all-time
high in BTCUSD would take the top cryptocurrency to over $200,000
per coin in total. In terms of lower prices, the indicator also
provides TDST support and resistance levels. These levels rise and
fall with each completed TD setup. This latest setup caused TDST
floor price support to raise from $10,000 to $25,000, reducing the
chances that BTCUSD ever trades below that price again. In December
2020, after a failed TD9 sell setup, #Bitcoin did another 143% in 4
weekly candles, pushing above former ATH resistance The same
magnitude move would bring $BTC to another new ATH at $85,000
before the end of the year Still doubt my thesis we’ll see ATHs in
2023? pic.twitter.com/GwCXEaY1II — Tony “The Bull”
(@tonythebullBTC) November 17, 2023 Tony is the author of the
CoinChartist (VIP) newsletter. Sign up for free. Follow
@TonyTheBullBTC & @coinchartist_io on Twitter. Or join the
TonyTradesBTC Telegram for daily market insights and technical
analysis education. Please note: Content is educational and should
not be considered investment advice. Featured image from
Shutterstock, Charts from TradingView.com
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