According to DTAP Capital founder Dan Tapiero, Bitcoin’s daily chart is about to show a “perfect TD 9 buy signal.”
Last time it happened, Bitcoin was trading at $3,600 in January 2019 without any sign of an upcoming 400 percent rally that peaked at $13,700 in June.
Bitcoin might put in a perfected TD 9 buy signal today. Last time I pointed out it disappeared on close. (Thanks to @TommyThornton for catching.) Very important to watch 5pm "close" to confirm. Rare buy signal last at 3600 Jan'19 came right before large multi-month 400% rally. pic.twitter.com/iBVKR3bkR9— Dan Tapiero (@DTAPCAP) September 30, 2019
A major buying opportunity
The indicators developed by market technician Tom Demark have proven to be very effective when it comes to analyzing market trends in-depth (although, they are not as widely used by traders as the RSI or MACD).
The aforementioned tweet specifically focuses on the TD Sequential. This number indicator helps traders to spot an ideal buying opportunity. When a certain asset posts nine consecutive closes lower than the close four bars before that, it might be a sure-fire sign that the asset has already bottomed out.
The bearish momentum
Just like any other indicator, this doesn’t guarantee a trend reversal given that the market sentiment might be way too strong for such a U-turn.
As reported by U.Today, Bitcoin experienced a high-volume breakdown of the descending triangle, which pushed its price to the current $8,000 level.
After this precipitous drop, there was a knee-jerk reaction among the bears to call this bull market into question.