A closely followed analyst in the cryptocurrency market highlights potential buy signals for Bitcoin using the Tom DeMark（TD）Sequentialindicator,suggesting a possible price increase despite recent marketvolatility.
Points
- AnalysthighlightspotentialbuysignalsforBitcoinusingtheTDSequentialindicator.
- HistoricaldatasuggestsapositivetrendforBitcoininJuly.
- Marketvolatilitypersists,butopportunitiesforrecoveryarepresent.
Analyst’sBitcoin（BTC）Comment
One of the closely followed analysts in the market commented that an important indicator on the Bitcoin（BTC）side might be signaling a priceincrease.In hisstatements,analyst Ali Martinez highlighted the Tom DeMark（TD）Sequential indicator on the social media platformX,emphasizing that buy signals might have emerged when looking atBTC’shourlychart.
TD offers a buy signal predicting a recovery of one to four hourly candles for BTC onBitcoin’shourlychart!
Commenting on the TD Sequentialindicator,it is known to be used by traders to determine turning points for the asset beingexamined.
Theanalyst,who also examinedBitcoin’spastperformances,emphasized that July tends to be more productive for BTC following challenging Junemonths.
Historically,when Bitcoin has a negativeJune,it tends to bounce back strongly inJuly.Infact,BTC has shown an average return of7.98%and a median return of9.60%during thismonth.
Despite allthis,theanalyst,who also examined the open futures positions in themarket,stated that the decline in Bitcoin might not be over yet andadded:
The movement in Bitcoin prices wasbrutal,but only$280.9million in long positions and$25.4million in short positions wereliquidated.In thepast,we have seen mass liquidation events exceeding$1billion!This either indicates that the decline in BTC is not yet over or that shorts are about todisappear.
WhatisBitcoin’sCurrentPrice?
As of the time ofwriting,Bitcoin is trading at$58,100after a2.5%drop in the last24hours.Considering that it visited levels above$63,000onMonday,this decline is understood to be larger thananticipated.
There was also a noticeable decrease inBTC’smarketvolume.After the pricedrop,the volume fell to$1.147trillion,supporting the overall marketdecline.On the otherhand,BTC’strading volume increased by43%to$40.111billion.
This increase in volume strengthened the view that investors might be panic selling short due to the existing marketdecline.
WrappingUp
Despite the recent marketcrash,indicators such as the TD Sequential suggest potential buy signals forBitcoin.Historical trends and trading volumes support a cautious optimism for a recovery inJuly.Investors should remainvigilant,considering both the potential for a rebound and the underlying marketvolatility.