Bitcoin (BTC) has seen an absolute whirlwind 24 hours. Over the course of a single day’s time, $400 million worth of BitMEX positions were liquidated, Bakkt volume surged to fresh all-time highs, blockchain became a topic of discussion for Chinese President Xi Jinping, amongst other crazy events that managed to fall into the time span of a single. freaking. day.
Related Reading: Bitcoin Price Rips Past $9,000, Now Up 20% On the Day
This zaniness, if you want to call it that, was reflected in the market for Bitcoin. The cryptocurrency saw a daily trading range of $7,300 to $10,600 — a jaw-dropping $3,300, around 40% if measured from the bottom. This surge represented the cryptocurrency’s third or fourth-largest gain in its history, depending on who you ask.
However, it seems that bulls are exhausted. How could they be not?
Bitcoin Bulls Take a Rest
As of the time of writing, the leading cryptocurrency is resting on its laurels. The thing is, it’s not working.
Since the daily peak of $10,600 seen some seven-odd hours ago, the cryptocurrency has slumped by 13%, falling by $1,300 from said peak. Bitcoin is now trading for $9,300, and seems poised to breakdown further unless bulls step in.
$9,400 is purportedly a key resistance area that Bitcoin will need to close a daily candle above to verify that the bearish correction is most likely over and that continuation to $10,000 and beyond is possible.
Importantly, though, this pullback corroborates an analysis done by Nunya Bizniz, a popular analyst. He noted, as reported by NewsBTC, earlier on Saturday that a Bitcoin four-hour candle which reached as high as $10,600 on BitMEX, is a “perfected Tom Demark Sequential 9.”
Bizniz remarked that “a TD 9 typically indicates trend exhaustion,” implying that there may be some stagnation or a healthy pullback before a resumption of the uptrend.
Indeed. He added that according to Tone Vays’ take on the indicator, “we may see a one to four candle pullback (four to 16 hours) and then resume up.”
Current candle is a perfected TD9.
A TD9 typically indicates trend exhaustion.
However, It has occurred well above the TDST line (red dots). Which is a signal that the trend may continue.
According to @ToneVays we may see a 1 to 4 candle pull back and then resume up. pic.twitter.com/BgtybbvcBi
— Nunya Bizniz (@Pladizow) October 26, 2019
Featured Image from Shutterstock
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