U.Today – On the hourly chart, TD Sequential is indicating a buy signal, suggesting that BTC could boost by one to four candlesticks. This is often used in technical analysis to detect possible turning points in asset prices.

The indicator, which was created by Tom DeMark, finds trend exhaustion points by examining the sequence of price bars. The indicator consists of two phases: the setup phase and the countdown phase.

In the setup phase, nine price bars in a row are needed, each of which closes higher (in a downtrend) or lower (in an uptrend). The countdown phase that occurs if this setup is successful looks for a string of 13 bars that close lower (in the case of a downtrend) or higher (in the case of an uptrend) than the previous two bars.

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When the countdown ends, it usually indicates that the trend has reached its limit and will soon reverse. TD Sequential flashed a buy signal on Bitcoin’s hourly chart, potentially predicting a price reversal. This signal may provide a short-term break from the current downtrend, which indicates a possible price boost in the next up to four-hour candlesticks.

The price of Bitcoin has recently dropped for a number of reasons. First, the main factor was decommissioning clusters. A cascading effect was observed in the price decline due to huge sell-offs and forced liquidation of leveraged positions. Downward pressure was exacerbated by huge clusters of liquidations in the $72,000-$69,000 and $66,000 ranges.

Moreover, the shift away from US Bitcoin ETFs has contributed to the BTC price action we are currently seeing. Last Monday, these ETFs experienced net outflows of $64 million, breaking a 19-day streak of inflows. Bitcoin price is under further pressure as investor sentiment shifts from accumulation to selling.

This article was originally published on U.Today