Saad Ullah
Technical analysis enthusiasts are closely monitoring Bitcoin as it displays a familiar pattern that previously delivered substantial gains. The TD Sequential indicator, known for identifying potential trend reversals, has just flashed another buy signal that could signal the end of the recent correction phase.
Recent Market Action
Bitcoin recently triggered a TD Sequential buy signal that proved remarkably effective. According to analysis by Ali, when this indicator last appeared in early September, it catalyzed an impressive rally from approximately $106,000 to nearly $117,000 - representing a gain of over $10,000 in just a few days. This move delivered roughly 10,637 points, translating to a 9.95% increase that caught many traders' attention.
The current setup emerges after Bitcoin experienced a sharp pullback from the $117,000 peak. The cryptocurrency is now trading around $110,123, showing tentative signs of finding its footing after the recent decline.
Technical Levels and Market Structure
The bulls have managed to defend the critical $108,000-109,000 support zone, which represents a key battleground for maintaining bullish momentum. This area has proven resilient during the recent selling pressure, suggesting underlying strength in the market structure.
Looking upward, the primary resistance target sits near $116,000, where the previous rally encountered selling pressure and ultimately stalled. The reappearance of the TD Sequential buy signal indicates that bearish momentum may be weakening, potentially setting the stage for another upward move.
Market Expectations and Scenarios
Traders are positioning for two primary scenarios based on the current technical setup. A decisive break above the $113,000-114,000 range would likely reinforce bullish sentiment and open the door for a test of $116,000 and potentially higher levels. This outcome would align with the historical performance of similar TD Sequential signals.
Conversely, a failure to hold above $108,000 could invalidate the bullish signal and potentially drag Bitcoin back toward the $105,000 level, where additional support may emerge.
Conclusion
While technical indicators provide valuable insights into market sentiment and potential turning points, they cannot guarantee specific outcomes. The TD Sequential's track record on Bitcoin's daily chart has been noteworthy, with the previous signal delivering swift and substantial gains. The next several trading sessions will be crucial in determining whether this latest signal can replicate its predecessor's success or whether Bitcoin faces continued selling pressure in the near term.
Saad Ullah
