Bitcoin price was kept on climbing by as much as 220% before bullish momentum came to a halt, history repeated?

By Selena On Jul 30, 2020

Bitcoin price this week has increased by more than 15% to $ 11,400. On a specific time frame, the new resistance stage has signaled that the uptrend may be exhausted and coming to an end. However, in the past, Bitcoin continued to grow by 220% before the bulls stopped. With this supposedly bearish signal triggering yet again, will it lead to a pullback or continued pump?

The bearish signal triggering yet again, how’s about Bitcoin price?

Crypto analysts not only check current price action for such signals, but they also look at past cases with specific signals triggered and compare them with other signals active market conditions. Historic recurrence is a genuine phenomenon, and markets are said to be cyclical by nearly every top analyst ever.

Assets like gold, currencies, or even some major stock indices have traded for over a century for analysts to compare with. Bitcoin and other crypto assets, however, have about ten years or less.

Because of their scarcity and underlying differences, such as the relationship between mining companies and asset classifications, they are even more challenging to understand.

However, several techniques have been used with much success. In the cryptocurrency market, very few indexes are considered as accurate as of the TD Sequential indicators. A 9 count on the indicator results in a buy or sell setup, depending on the sequence. A countdown to 13 points to a trend becoming exhausted, or yet another point of a potential reversal.

BTCUSDT 3D TD Sequential 13 Countdown | Source: TradingView

On the 3-day BTCUSD price chart, the TD Sequential indicator reached a countdown of 13 candles. And while this often indicates that the trend is nearing exhaustion, in the past, there have been some interesting results.

A countdown of 13 on the 3-day BTCUSD price chart can only be seen in two cases over the past four years of crypto market price action. For the first time, the number 13 appeared just over a year ago in June 2019. Crypto broke $ 9,000 and first broke above $ 10,000 since the bear market began. The total number of protests is more than 60% following the trend exhaustion signal.

BTCUSDT 3D TD Sequential 13 Countdown 2017 Top Fractal | Source: TradingView

Another bearish trend has taken place, dropping Bitcoin to $ 3,800 on Black Thursday, bringing the market back to where we are today. As strong as the 2019 example was, it is the 2017 rally that is particularly noteworthy.

In this case, the same 13 countdowns triggered on BTCUSD when it turned over $ 6,000 – a level that plays a supporting role for most bear markets. After surpassing that critical level, Bitcoin soared by 220% through $ 10,000 and to an all-time high of $ 20,000.

BTCUSDT 3D TD Sequential 13 Countdown 2017 Top Fractal | Source: TradingView

The Bitcoin price again shows 13 countdowns on TD Sequential over the 3-day time frames. If historical recurrence exists and the crypto market cycle is ready to start over, the signal of exhaustion of this trend will lead to another explosion like before.

The Fed kept interest rates unchanged and warned of the impact of COVID-19 on the recovery of the US economy

At the end of the two-day meeting on July 28-29, the Federal Open Market Committee (FOMC) of the US Federal Reserve (Fed) announced that it would keep interest rates unchanged at 0% -0.25%, and affirmed that the recovery of the US economy will depend significantly on the course of the COVID-19 pandemic.

Fed policymakers also affirmed their commitment to using “the whole set of tools” to support the economy until the target is reached. Earlier, Fed Chairman Jerome Powell said the central bank could do more to support the economy to combat the negative effects of the COVID-19 pandemic.

In the past, the Fed has implemented a series of policies such as keeping interest rates at record lows, injecting capital into financial markets, buying back corporate bonds, lending to support bond issuance. New votes of large enterprises, boosting the attractiveness of stocks to support financial markets in the context of the US economy struggling with the pandemic.

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