Because the previous bottom of $5700 came so close to this level of support, should we break below the prior low, we could very well fall through the $5000 support. Falling below $6800 (and $6400 as a more conservative target), would spell trouble and indicate potential for a lower low down to the next level of support at $5000. As was expected, the turnaround happened as the 30 and 50 week moving averages crossed that was considered major resistance. The weekly chart has had 2 good green candles after reaching a 9th week of downward momentum and has started to show potential for a flip to the downside again if we close below the prior week’s open of $7400. ~Based on the sequential trading system (TD Sequential). Follow him for regular updates in topics relating to price, law, and fundamentals of bitcoin and the block chain. This summary is based on the technical analysis Tone does at the end of his video linked below. But, it coincides with the failed attempts of Bitcoin to break out of the $7,200 to $7,400 resistance area in the past two weeks, showing stagnancy.All credit to Tone and his crew that has played a significant role in my understanding of what bitcoin and the block chain is. Whether the TD9 on a 4-hour Dow chart will eventually lead to a 9 on the daily chart remains to be seen. For example, on a daily chart, 13 candles represents 13 days, so it evaluates a relatively longer price trend than other technical indicators.ĭow Jones Industrial Average chart. The TD9 indicator tends to be accurate on high time frames because it requires 13 candles to close within a certain structure. Since then, the Dow rallied by more than 27 percent in a single month. The last time the Dow Jones saw a TD9 on a high time frame was on the daily chart on March 18 as a buy signal. On higher time frames, the TD9 signal tends to be highly accurate. TD9 has been accurate for both Bitcoin and Dow in 2020 With two widely adopted technical indicators pointing toward the resumption of a bearish trend for the Dow Jones, the Bitcoin price could see a retest of the $4,000 to $5,000 range in the near-term if the frantic sell-off of major asset classes continue. The Dow is slightly below the 0.618 Fibonacci level, which could mean that there is an overhead resistance that may temporarily halt the recovery of the U.S. It typically decides whether an asset or an index like Bitcoin or the Dow remains in a downtrend or breaks out to see an extended rally. In a Fibonacci system, the 0.618 level indicates a reversal point in a price range. The most recent TD9 of the Dow Jones could be considered as a stronger sell signal than a normal TD9 because it is complemented with an overhanging resistance in a Fibonacci Retracement. This would indicate that selling pressure is mounting and it is portraying early signs of a potential reversal to see a bearish retest of recent lows.ĭow Jones Industrial Average 4-hour chart prints TD9. On higher time frame charts, it is still not demonstrating a clear TD9 sell signal. Source: HackernoonĬurrently, the Dow Jones Industrial Average (DJIA) is similarly showing a TD9 on the 4-hour chart. Since the price increased, it indicated a TD9 sell signal. Essentially, on any time frame, if the chart of an asset shows nine consecutive candles above or below the closure of four candles prior, then it prints a TD9.įor instance, in 2018, a TD sequential chart by Tone Vays showed the Bitcoin price flashing nine consecutive candles on a 4-hour chart that was above the closure of four candles before the nine candles. The TD sequential is an indicator that identifies a turning point in the price trend of an asset or an index. Fibonacci and TD9: a brutal combination for predicting corrective phases There is a strong possibility that a pullback of equities would translate to increased selling pressure on Bitcoin. stock market is at a major pivotal point as a TD9 sell indicator has lit up while the Dow Jones remains at the 0.618 Fibonnaci level.
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