Stocks TD9 Sell Sign Flashes Yet Bitcoin Traders Expect Higher Price

The S&P 500 sees a TD9 sell signal confirmed on multiple time frames but traders remain optimistic about the price of Bitcoin.

The TD9 sell indicator emerged on the S&P 500 chart across various time frames. Considering the heightened level of correlation between Bitcoin and stocks, it might hint at a short-term BTC price pullback.

But cryptocurrency traders seemingly remain unfazed by the vulnerability of stocks. Several traders anticipate Bitcoin to rally towards the mid-$9,000s despite the TD9 signaling for a correction.

What is the TD9 system, and why could it hint at a BTC pullback?

A TD9 sell signal is an indicator part of the widely-cited TD Sequential system. It spots a potential trend reversal by identifying overextended corrections or rallies.

A TD9 buy or sell signal appears when nine consecutive candles are higher than the four candles prior. As an example, let’s assume the price of Bitcoin opened at $10,000 on a daily chart at the start of a month. If BTC closes above $10,000 for the next 13 days, a TD9 sell signal would confirm.

Typically, a 13-day rally with barely any pullback leads to the confirmation of a TD9 sell signal across many time frames. This week, a pseudonymous trader known as Fomocap said that the signal emerged on the daily, 12-hour and 6-hour S&P 500 charts. The trader said:

“TD9 signal confirmed on SPX: 1. D SPX 2. Multiframe: 24h, 12h, 6h.”

The TD9 sell signal appears on the S&P 500 chart

The TD9 sell signal appears on the S&P 500 chart. Source: Fomocap

Data from Skew meanwhile shows that the price of Bitcoin has demonstrated a relatively high level of correlation with stocks since March. As such, if the stock market falls in the near-term, it could affect the sentiment around Bitcoin.

Bu, the trader emphasized that the accuracy of the TD9 signal is debated because it can give false signals. In a bull market, for instance, the price of Bitcoin or U.S. stocks can continuously see uptrends without major pullbacks. In that case, the TD Sequential system could become less effective. The trader said:

“It’s one of many PA patterns. Yes, basically momentum. TD9 gives lots of false signals too. Better to collect all data, angles, views then stuck in own imagination paradigm. Just to keep on radar, no blindly following.”

Crypto traders remain optimistic on Bitcoin

At the same time, according to market analyst Michael van de Poppe, the uptrend of Bitcoin remains intact due to resilience at a strong support area.

Bitcoin has remained above $9,200 for the majority of the past two months. BTC saw brief drops below $9,000, but the top cryptocurrency recovered quickly.

The price chart of Bitcoin with a potential fractal upwards

The price chart of Bitcoin with a potential fractal upwards. Source: Crypto Michael

If BTC continues to defend the $9,200 level and breaks out above $9,300, Van de Poppe noted that a rally to above $9,600 is likely. He said:

“So far, so good. Support holding, the massive crash didn’t occur. If we break $9,300, I think $9,600 is a likely target short term.”

Bitcoin trader Zoran Kole also suggested that the chances of the Bitcoin uptrend continuing to the mid-$9,000s remain high.

Source: Cointelegraph.com

let us know if you have other interesting news about this topic or other interesting crypto news. Take a look at our useful collection of bitcoin videos and learn more about Bitcoin and Blockchain. Investing in Crypto can be very profitable but always make sure you’re keeping your coins safe and keep being informed reading our latest news about cryptocurrencies.

You’re invited to share your opinion about this news “Stocks TD9 Sell Sign Flashes Yet Bitcoin Traders Expect Higher Price” by adding your comment bellow. Let’s keep this discussion civilized with a non-offensive language.

Tags: crypto newscryptocurrency news

Avatar

Passionate about Crypto-Currencies and Bitcoin enthusiast. Oliver is an Editor on Crypto Cool News.

Add Your Comment