Bitcoin price hit a new all-time high of $30,369 on Saturday. While bulls are likely to push higher in the near future, there is a slight bearish turn in the short term. Crypto analyst Ali points to the TD Sequential Indicator as a hint at a buy signal.
The price of Bitcoin has been on the rise, reaching its highest level ever in July when it broke over $30k. BTC is looking to achieve its fourth largest weekly gain year-to-date.
However, analysts say that despite the fact that BTC is currently trading at around $29,950, further declines are possible due to the possibility of a key bearish sign. On the upside, observers of the market see that a flip and a weekly candle closing above $31k is what bulls require to take control over the current volatility.
BTC Price Shows Sell Signal
Crypto analyst Ali has pointed to the potential for BTC to form a head and shoulders pattern on the daily chart. A chart shared on October 22 shows the possibility of the scenario unfolding given a key bearish signal – the TD Sequential indicator. The daily RSI, which has previously triggered significant pullbacks, also adds to the overextended view.
Ali tweeted: “The $BTC daily chart hints at a possible sell signal emerging tomorrow, based on the TD Sequential indicator flashing a green 9 candlestick. Not to mention, the RSI reached 74.21 – a level triggering sharp corrections since March.”
The analyst commented: “An impending price correction appears to be on the horizon unless #BTC manages to clock a daily candlestick close above $31,560.”
If a flip lower from the current resistance zone and confirmation of the H&S pattern occurs, it could mean a retest of immediate support around $28,492. A slight drop could also re-ignite the bearish goal of $25k.
The positive news about ETFs could lead to a rush of buyers towards the $40k range.
