Founder of investment advisory firm Hedge Fund Telemetry, Thomas Thornton, says Bitcoin’s impressive recovery from its March 2020 low of $3,850 is about to hit a brick wall.
The experienced hedge fund trader tells his 35,300 followers on Twitter that he has taken profits on some of his Bitcoin longs as the leading cryptocurrency flashes a reversal signal.
“Bitcoin update – removing half [of my] long position with new DeMark Sequential Countdown 13 and raising hard stop on remaining long to [$7,800] from [$6,500] entry”
Thornton analyzes Bitcoin’s price action using the TD Sequential indicator which traces a series of price points to signal possible trend reversals. Based on TD Sequential principles, a 13 count indicates a pause in the current trend, a pullback, or a reversal.ADVERTISEMENT
The signal is more reliable if it is supported by a leading indicator. In Bitcoin’s current case, Thornton points out that the RSI – which tracks the strength of the asset’s momentum – is nearly overbought. The technical analyst sees the combination of a 13 count and an almost overheated RSI as indicators for a Bitcoin retracement.
In December of last year, Thornton said BTC was poised to rally after it hit $7,300. The prediction turned out to be accurate as Bitcoin rose to a high of $10,412 on February 12th, 2020.Thomas Thornton@TommyThornton
Bitcoin with new DeMark Combo and Sequential buy Countdown 13’s. Needed to confirm is a price flip up (new 4 day closing high)