In the past few weeks, BTC rallied while hitting as high as $9,850 in the last 24 hrs. Several technical analysts opinionated that BTC price had earlier reached a critical support level which may further spur the pioneer crypto asset into a run. In the same school of thought, some foresee BTC hitting the $10k mark and even reaching $28,000 in months to come just in time before halving takes place.
However, crypto analyst Tom Demark has another opinion. Tom Demark, a consultant at Point 72, inventor of the TD Sequential Indicator, believes that BTC rally may be shortlived as the Sequential Indicator printed a reversal candle whose outlook is more bearish than bullish.
Citing three instances which the TD sequential had forecasted with measure of accuracy, in a Bloomberg interview, Demark recalled how the TD Sequential Indicator printed a reversal candle in December 2017 in which the flagship crypto-asset had a wild run hitting ATH of $20K, secondly when BTC price plunged to as low as $3,150 in December 2018, and lastly BTC climbing to $14K mark in June last year.
The TD sequential Indicator which came into the limelight last two years gives inflection points where crypto assets have hit a macro-reversal by printing a “13” candle which is a reversal candle.
The Indicator Suggests BTC Price May Experience a Pullback
Thomas Thornton, an analyst at Hedge Fund Telemetry maintained the same school of thought with Tom Demark, the inventor of TD sequential Indicator, that BTC’s recent rally may soon be cut short.
Thornton had anticipated a BTC price reversal from below $ 7,000 at the end of December 2019, when the Sequential Indicator printed the candle “13”, as predicted.
On Twitter, he advises his followers to start long selling and be neutral, as BTC may experience a pullback in the next few weeks due to the formed candle “13”.
Thornton, however, did not name the range of rollback, but crypto analyst Mayne suggests that it may exceed $ 1,000. That may lead to a decrease in the price of BTC to $ 8,000 level.
Forecasts Beyond the Bearish Sign
Looking beyond the technical dimension, Alex Krüger, an economist, and crypto analyst believe that BTC could soon back down based on historical events.
He believes that after the news that the BitMex financing rate for Bitcoin contracts is high at 0.14%, it is expected to roll back based on past events in which the BTC price plunged in the following days.
And, of course, there are no absolutes in this scenario, but in most cases, financing rates kept an inverse relationship to the BTC price.
Image Credit: Shutterstock