The TD9 sales indicator appeared on the SP 500 chart over various periods. Given the high correlation between Bitcoin and stocks Could suggest a short-term BTC price drop.
However, Crypto traders appear not to be disturbed by the vulnerability of the stocks. Several traders expect Bitcoin to rise by $ 9,000 despite a signal from TD9 for a correction.
What is the TD9 system and why could it indicate a BTC pullback?
The TD9 sell signal is an indicator of the broad quotes TD Sequential System. Detects a possible trend reversal by detecting excessive corrections or increases.
A TD9 buy or sell signal is displayed when nine consecutive candles are higher than the previous four. Assume the bitcoin price opened on a daily chart at $ 10,000 earlier this month. If BTC closes above $ 10,000 in the next 13 days, a TD9 sell-signal would confirm this.
Typically, an increase of 13 days with little retracement leads to confirmation of a TD9 sell signal over many periods. This week, a pseudonymous trader named Fomocap said the signal had popped up on the SP 500’s daily, 12-hour and 6-hour charts. The dealer said:
TD9 signal confirmed in SPX: 1. D SPX 2. Multiframe: 24h, 12h, 6h.
The TD9 sell signal appears on the SP 500 chart. Source: Fomocap
The skew data show this Bitcoin’s price has had a relatively high correlation with stocks since March. If the stock market falls in the short term, it could affect the sentiment around Bitcoin..
Bu, the dealer emphasized that The accuracy of the TD9 signal is discussed as there may be wrong signals. For example, in a bull market, the price of Bitcoin or US stocks can see bullish trends continuously without major setbacks. In this case the TD Sequential system could be less effective. The dealer said::
“It is one of many PA patterns. Yes, basically the dynamic. TD9 also gives a lot of wrong signals. It is better to collect all the data, points of view and views than to stay in the paradigm of your own imagination. Just to stay on the radar. “
Cryptocurrency traders remain optimistic about Bitcoin
At the same time, according to market analyst Michael van de Poppe, Bitcoin’s upward trend remains intact due to resistance in a strong support zone.
Bitcoin has been hovering over $ 9,200 for almost two months. BTC saw brief falls below $ 9,000, but the cryptocurrency recovered quickly.
Bitcoin price chart with fractal upside potential. Source: Crypto Michael
If BTC continues to defend the $ 9,200 level and exceed $ 9,300, Van de Poppe said so A rise above USD 9,600 is likely. Said as:
“So far, it’s good. Support remains, the massive decline has not occurred. If we exceed $ 9,300, I think that $ 9,600 is a likely short-term goal.”
Zoran Kole, also a Bitcoin trader He suggested as The chances that Bitcoin’s upward trend will continue between $ 9,000 and $ 10,000 remain high.