Renowned crypto analyst Ali has highlighted a significant development in Bitcoin‘s short-term trajectory, pointing to the emergence of a sell signal on the TD Sequential indicator. This indicator, highly regarded within the crypto community, suggests a potential correction for Bitcoin (BTC) within the next one to four candlesticks.
Specifically, on Bitcoin’s four-hour chart, the TD Sequential indicator has recently flashed a sell signal, signaling a potential exhaustion of the current uptrend and hinting at an impending short-term correction.
While the TD Sequential indicator doesn’t guarantee future price movements, its historical accuracy positions it as a notable tool for traders monitoring short-term market dynamics.
However, amidst this sell signal, it’s imperative to contextualize Bitcoin’s price action within a broader perspective.
At the time of reporting, BTC has recorded a 1.80% increase in the last 24 hours, reaching $65,736 following today’s trading session peak at $66,772.
Wednesday saw BTC surging past the $66,000 mark, propelled by U.S. inflation data that raised expectations of potential interest rate cuts by the Federal Reserve in the coming months. BTC, alongside other risk assets, remains sensitive to anticipated shifts in major central banks’ monetary policies.
Market Uncertainty Prevails
Ongoing market uncertainty is underscored by recent data releases indicating persistently high U.S. weekly jobless claims, coupled with a sharp rise in April import and export prices, with import prices surging by 1.1% in April alone.
Currently, attention is directed towards BTC’s daily 50-day Simple Moving Average (SMA) situated at $65,111, expected to serve as an interim support level to counter BTC’s ongoing price retreats. Bullish momentum may hinge on defending this critical support to avert potential declines nearing the $60,000 mark.
Conversely, should buyers sustain BTC’s price above the 50-day SMA, a potential rally towards resistance at $73,777 is conceivable, albeit amid anticipated resistance from bearish forces.
Galaxy Digital’s founder and CEO, Mike Novogratz, shared insights during the firm’s first-quarter earnings call, projecting Bitcoin’s consolidation within the $55,000 to $75,000 range before embarking on an upward trajectory. Traders are advised to monitor these pivotal Bitcoin price levels closely in the evolving market landscape.
