Bitcoin suggests a sell signal after hitting a 3-month high
Bitcoin price hit $30,369 on Saturday, the highest level since July. While bulls may push higher in the coming weeks, the immediate outlook suggests a bearish turn. The TD series indicator suggests that crypto analyst Ali suggests a sell signal.
On Saturday, the price of Bitcoin hit $30,369, above $30,000, reaching its highest level since July. BTC is actually looking for its fourth biggest weekly gain year-to-date.
However, while the benchmark crypto is trading around $29,950 at the time of writing, analysts say a further pullback is possible given the potential for a key bearish signal. Above all, market watchers see a candle closing above $31K as bullish. It is necessary to control the spread of volatility.
BTC price shows a sell signal
According to crypto analyst Ali, the ability to create a head and shoulders pattern for BTC on the daily chart has gained a lot of attention in the market. And on October 22, on the shared chart on X, the analyst issued a key bearish signal – the TD series indicator indicates the possibility of a given scenario.
Apart from the sell signal suggested after BTC price rallied over the past several days, the extended view added to the daily RSI, which had previously been a significant distraction.
“$BTC's daily chart suggests a possible sell signal tomorrow based on the green 9-candlestick TD sequence indicator. Not to mention, the RSI has reached 74.21 – a level that has triggered sharp corrections since March,” Ali wrote on X.
From this point of view, the analyst said:
“Until #BTC's daily candle fails to close above $31,560, an impending price correction appears to be on the horizon.”
There is a lot of talk around a potential head and shoulders pattern on the #Bitcoin daily chart. Let's break it down!
The daily chart of $BTC suggests a possible sell signal tomorrow based on the green 9 candlestick of the TD series indicator. Not to mention,… pic.twitter.com/h7CiwRFcHb
— Ali (@ali_charts) October 22, 2023
A break below the current resistance zone, and confirmation of the H&S pattern means a retest of immediate support around $28,492. A little selling could refresh the $25k target.
The flipside could be spread by positive ETF news, with buyers targeting a run to around $40k.
