Summary: Bitcoin price reached its highest level since July, hitting $30,369 on Saturday. While there is a possibility for further gains in the coming weeks, indicators suggest a potential bearish flip in the immediate outlook. Crypto analyst Ali points to the TD Sequential indicator, which hints at a sell signal. A daily close above $31,560 is needed for bulls to take control of the volatility. However, if the potential head-and-shoulders pattern on the daily chart confirms, a retest of support around $28,492 could occur, with a bearish target of $25,000.
Bitcoin price soared to a three-month high as it surpassed the $30,000 mark, reaching a peak of $30,369 on Saturday. This surge marks the fourth biggest weekly gain for BTC this year. However, despite trading around $29,950 at the time of writing, there are indications of a possible retreat due to a potential bearish signal.
BTC Price Shows Potential Sell Signal
According to crypto analyst Ali, there is increasing attention on a potential head-and-shoulders pattern forming on the daily chart for BTC. The analyst points to the TD Sequential indicator as a key bearish signal. Ali shared a chart on October 22, illustrating the possibility of this scenario unfolding.
The daily RSI also adds to the overextended outlook, as it has triggered notable pullbacks in the past. Ali has noted that a possible sell signal could emerge based on the TD Sequential indicator flashing a green 9 candlestick and the RSI reaching 74.21, a level that has historically resulted in sharp corrections since March.
Based on this analysis, Ali suggests an impending price correction unless BTC manages to achieve a daily close above $31,560.
A flip lower from the current resistance zone and confirmation of the head-and-shoulders pattern could lead to a retest of immediate support around $28,492. There is also the potential for a slight sell-off, which could reignite the bearish target of $25,000. On the other hand, positive news regarding ETFs could catalyze a rally, with buyers targeting the $40,000 range.
What was the highest price Bitcoin reached recently?
Bitcoin reached its highest price since July, hitting $30,369 on Saturday.
What is the potential sell signal for Bitcoin?
The potential sell signal for Bitcoin is indicated by the TD Sequential indicator, as highlighted by crypto analyst Ali.
What is the outlook for Bitcoin in the immediate future?
The immediate outlook for Bitcoin suggests a potential bearish flip, according to the analysis of the TD Sequential indicator and the head-and-shoulders pattern on the daily chart.
What could happen if the head-and-shoulders pattern confirms?
If the head-and-shoulders pattern on the daily chart for Bitcoin confirms, there could be a retest of immediate support around $28,492, with a possible bearish target of $25,000.
What could trigger a rally for Bitcoin?
A positive development regarding ETFs could act as a catalyst for a rally in Bitcoin, with buyers targeting the $40,000 range.