Hedge Fund Analyst Abruptly Changes Crypto Strategy, Warns Bitcoin (BTC) Signal Shows Impending Reversal

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”

Source: via Twitter

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)

View image on Twitter

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Author: https://dailyhodl.com/author/thedailyhodl/

Source: https://dailyhodl.com/2020/05/03/hedge-fund-analyst-abruptly-changes-crypto-strategy-warns-bitcoin-btc-signal-shows-impending-reversal/

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