Bitcoin at Crossroads: TD Sequential Sell Signal and Bullish RSI Clash at $71,000 Peak

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The Tom Demark (TD) Sequential has cast a pall over Bitcoin’s meteoric rise, casting a sell signal after the cryptocurrency’s price spilled over a new high of $71,000. As indicators flash red, aficionados of the digital currency are left to grapple with the implications.

This deterministic news comes via the analysis of Ali Martinez, whose seasoned eye spotted a TD Sequential signal in Bitcoin’s 1-hour price chart. The TD Sequential, for those unfamiliar with the arcane lexicon of technical analysis, is an invaluable tool used to project potential points of reversal in any commodity’s price.

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As the dance of the market unfolds, the TD Sequential observes a dazzling rhythm of setup and countdown. First, like couples on the dance floor, nine candles of the same color, be it red or green, determine the setup phase. Once the orchestra of numbers plays its ninth note, the asset is assumed to have met its reversal point.

This dance of the candles is not without consequence. Should the setup phase proffer red candles, buyers take heed and a buy signal is presented for the asset. Flip the color to green, however, and heads turn towards a possible reversal to the downside.

Like a second act, the countdown begins. A mirror of the first, this stage counts to thirteen, hinting at another possible pivot on the price axis.

Recently, Bitcoin cut a rug with the TD Sequential in its 1-hour price chart. Martinez’s chart clearly depicts the termination of the setup phase strewn with green candles. The setup’s conclusion, coupled with Bitcoin’s surge past the $71,000 mark – a first since mid-May – paints this party in bold strokes.

Yet, some may argue that the fiesta might be nearing its end. The completed green TD setup suggests Bitcoin may have hit a temporary crest. A reversal, sending prices tumbling down, could well be in the offing.

Although the TD Sequential signals concern for Bitcoin’s immediate future, its companion in technical analysis, the Relative Strength Index (RSI), offers a glimmer of hope. Outlined by CryptoQuant author Axel Adler Jr, Bitcoin’s RSI hints at a bullish turn. The RSI, by measuring recent changes in the asset’s price, rewards Bitcoin a score of 56% on its 14-day chart.

Traditionally, a score below 30% denotes an undervalued asset, primed for the buying. Yet exception marks the rule here, with Bitcoin’s previous three significant uptrends initiated at this precise RSI score. Chance or calculated pattern, this portends a sharp upsurge for Bitcoin.

Despite the TD Sequential’s foreboding, Bitcoin remains undeterred, steadily inching past $71,600. Whether Bitcoin will continue its ascent or bow to the signals remains to be seen, leaving onlookers with bated breath in anticipating the digital currency’s next move.