Bitcoin bear-market bottom signs appear as the TD9 indicator mirrors the final stages of the 2022 BTC price downtrend.
Bitcoin (BTC) has delivered a key trend change setup in the latest sign that the macro downtrend could soon reverse.
In an X post on Tuesday, analyst Tony Severino flagged a “perfected” buy signal on the TD9 indicator.
TD9 is a derivative of the Tom DeMark Sequential market timing indicator, which alerts traders to potential trend changes. Here, price triggers a notable signal when nine candles in a row close higher (in an uptrend) or lower (in a downtrend) than the closing price four candles prior.
“Bitcoin has ‘perfected’ a TD9 buy setup on the monthly,” Severino commented alongside data from TradingView.
BTC/USD one-month chart with TD9 indicator data. Source: Cointelegraph/TradingView
The setup is Bitcoin’s first in several years on monthly time frames, with the last TD9 downtrend signal coming in July 2022.
At the time, BTC/USD spent another five months ironing out its bear-market bottom, and as Severino notes, a completed TD9 setup does not "necessarily mean that the bottom is in.”
“Not a buy signal by itself. But if it holds into the close, it’s the kind of thing you pay attention to,” Tony Carrera, host of the Proof of Pain podcast, wrote in a further X post.
As Cointelegraph reported, consensus among market participants still favors new macro lows coming before the bear market truly reverses.
Related: Bitcoin just $5K away from ‘best investment opportunity’ of bear market
Targets differ, with $55,000 now popular, while BTC price cycle comparisons put the current bear market at just over two-thirds complete.
Source
This article is syndicated for educational reading. For the latest updates, visit the original publisher.
Read on cointelegraph.com
