bitcoin recently gave a bearish signal, which ultimately failed to produce a significant pullback.
Due to the technical failure, historical data suggests that in just a matter of a month BTCUSD could set a new all-time high and reach a target of $85,000 per coin. This is why.
Why failed bearish techniques produce bullish breakouts
In technical analysis, certain patterns are considered characteristically bearish or bullish. For example, the ascending triangle is a typically bullish pattern, but it only breaks upwards 63% of the time. The remaining 37%, the pattern breaks downwards.
Due to the nature of how orders and stop losses are accumulated on either side of a pattern’s trend lines, a failed bullish pattern can be extremely bearish and vice versa. Analyzing further, since the pattern was visibly bullish, it could have attracted more long positions that are forced lower.
Recently, bitcoin price gave a bearish TD9 sell setup on the weekly TD Sequential. However, no major correction occurred. When this occurs, it often results in considerable movement in the opposite direction of the signal.
Simply put, the failed TD9 sell setup could mean a massive move higher. And how high the price could go and how quickly it could surprise you.
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Could btc reach $85K in four weeks? | BTCUSD on TradingView.com
Market Timing Tool Hints at bitcoin Rally to $85,000
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 indicate trend exhaustion.
In 2020, when this same signal failed, bitcoin reached new all-time highs above $20,000 and then some. It recovered 143% in the four weeks after the signal and more than 300% more in total when all was said and done.
If a move of the same magnitude followed this recently failed TD9 short setup, the price of bitcoin would reach $85,000 by the end of December. Another 300% beyond the current all-time high in BTCUSD would take the leading 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 go up and down with each full TD setup. This latest setup caused TDST’s bottom price support to rise from $10,000 to $25,000, reducing the chances of BTCUSD trading below that price again.
In December 2020, after a failed TD9 sell setup, bitcoin?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#bitcoin made another 143% in 4 weekly candles, surpassing the old ATH resistance
A movement of the same magnitude would bring $btc to another new ATH at $85,000 before the end of the year
Do you still doubt my thesis that we will see ATH in 2023? pic.twitter.com/GwCXEaY1II
– Tony “El Toro” (@tonythebullBTC) November 17, 2023
