Crypto analyst Ali has highlighted a significant development in the Bitcoin market, indicating a potential correction ahead as a popular indicator, the TD Sequential, has recently issued a sell signal on the short-term charts.
The TD Sequential indicator, observed on Bitcoin’s four-hour chart, suggests that the current uptrend may be losing momentum, signaling a possible short-term correction in the near future. While the indicator’s predictions are not infallible, its historical accuracy makes it a noteworthy tool for traders monitoring short-term price movements.
Despite this sell signal, it’s crucial to contextualize Bitcoin’s price action within the broader market landscape.
At the time of reporting, Bitcoin was up by 1.80% in the last 24 hours, reaching $65,736 after hitting highs of $66,772 during today’s trading session.
Bitcoin surged above $66,000 earlier in the week following U.S. inflation data releases that heightened expectations of potential interest rate cuts by the Federal Reserve in the coming months. Bitcoin, like other risk assets, is sensitive to anticipated shifts in major central banks’ monetary policies.
Market uncertainty persists as recent data releases indicate ongoing elevated U.S. weekly jobless claims, alongside sharp rises in April import and export prices. Import prices notably increased by 1.1% in April.
Currently, market attention is focused on Bitcoin’s daily 50-day SMA (Simple Moving Average) at $65,111, expected to serve as an intermediate support level to stem Bitcoin’s ongoing price declines. Bulls may need to defend this critical support level to prevent further declines toward the $60,000 mark.
Conversely, if buyers succeed in sustaining Bitcoin’s price above the 50-day SMA, it could trigger a potential rally toward the resistance level at $73,777, where resistance from bears is anticipated.
Galaxy Digital founder and CEO Mike Novogratz, during the firm’s first-quarter earnings call, predicted that Bitcoin might consolidate within the range of $55,000 to $75,000 before experiencing further upward movement. Traders are advised to closely monitor these key Bitcoin price levels for potential market movements.