A crypto analyst spotted a strong buy signal for Bitcoin. Let’s break it down.
Bitcoin’s 4-Hour Chart Shows a Buy Signal
A technical indicator called the TD Sequential flashed a “buy” signal on Bitcoin’s 4-hour chart. This means the downward trend might be ending, and a price bounce could be on the way. Specifically, a “green 9” candle appeared – a classic buy signal in a downtrend. Even better, an “A13” marker also showed up, suggesting a stronger potential reversal. This all happened when Bitcoin’s price crossed $94,000, with $94,915 suggested as a good entry point for traders.
Cautious Optimism
While this is a positive signal, remember that no indicator is perfect. Consider other factors like overall market sentiment and volatility before making any trades. If the buy signal holds, a price increase is likely. However, if Bitcoin’s price drops, it could fall to a lower support level.
Predicting Bitcoin’s Peak
The analyst also used another indicator, the Mayer Multiple, to predict Bitcoin’s potential peak. Historically, Bitcoin’s price has peaked when the Mayer Multiple (which compares Bitcoin’s price to its 200-day moving average) hits 2.4 or higher. Currently, it’s at 1.3845. If it climbs to 2.4, the analyst predicts a peak above $168,500. That’s a significant 78% increase from the current price of around $94,692.
