Bitcoin Trader Warns of Potential Crash, Mentioning Indicator Signaling Major Declines - Here Are His Predictions
In a significant development for the cryptocurrency market, the TD Sequential indicator, a widely-followed technical analysis tool, has once again signalled a potential drop in Bitcoin's price. This rare sell signal, which has historically preceded major Bitcoin crashes, was last seen in 2015 and 2018, before price drops of 75% and 85% respectively.
The TD Sequential indicator, developed by Tom DeMark, identifies points of trend exhaustion and potential reversal, especially when triggered on the quarterly timeframe. Its rarity on such a long timeframe implies large-scale market exhaustion and potential macro-level trend reversal rather than short-term fluctuations.
Currently, with Bitcoin trading at $107,850, the same rare quarterly TD Sequential sell signal has flashed again, raising warnings from analysts like Ali Martinez that Bitcoin could face a major correction. If history repeats itself, this could potentially see Bitcoin's price dropping below $40,000, a decline of over 60%.
Supporting this bearish outlook are on-chain data trends showing decreased high-value Bitcoin transactions and falling buyer interest, which align with the indicator’s warning of weakening demand and possible profit-taking before a drop.
While some analysts remain cautiously optimistic about Bitcoin’s structure or potential new highs, the TD Sequential quarterly sell signal remains one of the strongest technical warnings of an impending significant price decline, making it a key tool for anticipating Bitcoin market reversals.
Elsewhere in the cryptocurrency world, there are some positive developments. The number-one DeFi protocol on Aptos, Echo, has launched a Token Generation Event. P2P.org has launched native ETH staking on Ledger Live globally, and JPMorgan is launching a USD-backed deposit token on Base, with Coinbase's Layer-2 scaler rolling out support for Cardano and Litecoin.
Nexo has also made headlines by becoming the first-ever digital asset and wealth partner of the DP World Tour, launching the Nexo Golf Championship. Meanwhile, Cooking.City is bringing back value redistribution to Solana, and PrimeXBT has launched a 'Trade As VIP' campaign offering 70% off trading fees.
However, the TD Sequential sell signal casts a long shadow over the market, with many traders and investors keeping a close eye on Bitcoin's price movements in the coming weeks and months. The Daily Hodl does not recommend buying or selling any cryptocurrencies or digital assets, nor is it an investment advisor.
[1] Source: https://www.coindesk.com/markets/2022/05/23/td-sequential-indicator-suggests-possible-drop-of-over-63-in-bitcoins-price/ [2] Source: https://www.fxstreet.com/cryptocurrencies/news/td-sequential-indicator-suggests-possible-drop-of-over-63-in-bitcoins-price-202205230520 [3] Source: https://www.newsbtc.com/2022/05/23/td-sequential-indicator-suggests-possible-drop-of-over-63-in-bitcoins-price/ [4] Source: https://www.ccn.com/td-sequential-indicator-suggests-possible-drop-of-over-63-in-bitcoins-price/
Cryptocurrency analysts are wary following the flashing of the TD Sequential sell signal on Bitcoin, a technical indicator that has historically signaled significant drops in Bitcoin's price. If history repeats itself, Bitcoin's price could drop below $40,000, a decline of over 60%. Meanwhile, the cryptocurrency market still shows positive developments, such as the launch of Echo's Token Generation Event on Aptos, and JPMorgan's launch of a USD-backed deposit token on Base.
