Bitcoin Signals Potential Sell Signal After Reaching 3-Month High

Bitcoin has recently hit its highest price level since July, reaching $30,369 on Saturday. While this surge in price suggests bullish momentum, there are indications of a potential bearish reversal. Crypto analyst Ali points to the TD Sequential indicator, which hints at a sell signal.

The Potential Sell Signal

According to Ali, the market has been paying close attention to a potential head-and-shoulders pattern forming for Bitcoin on the daily chart. This pattern, combined with the TD Sequential indicator flashing a green 9 candlestick, suggests a potential sell signal. Additionally, the daily Relative Strength Index (RSI) reaching 74.21, a level that has historically triggered significant corrections, adds to the bearish outlook.

Ali states, “An impending price correction appears to be on the horizon unless BTC manages to clock a daily candlestick close above $31,560.”

Potential Scenarios

If the resistance zone holds and the head-and-shoulders pattern is confirmed, Bitcoin could experience a retest of immediate support around $28,492. A further sell-off could even bring the price down to $25,000, which has been a bearish target in recent months. However, positive news regarding Exchange-Traded Funds (ETFs) could potentially catalyze a flip to the upside, with buyers targeting a run to the $40,000 area.

Overall, while Bitcoin has hit a 3-month high, it is important to keep an eye on these potential bearish signals. A sell-off may be imminent unless Bitcoin manages to sustain its price above key resistance levels. Traders and investors should closely monitor market developments and be prepared for possible market corrections.

Editor’s Notes: Stay Up-to-Date with Cryptocurrency News on Uber Crypto News

For the latest news, updates, and insights on cryptocurrencies like Bitcoin, make sure to follow Uber Crypto News. Stay informed about market trends, regulatory changes, and key events in the world of cryptocurrencies. Uber Crypto News is your go-to source for all things crypto. Visit Uber Crypto News now to stay one step ahead in the crypto world.

You might also like

Comments are closed, but trackbacks and pingbacks are open.