Today we highlighted a counter-trend “buy” signal in bitcoin to our Cryptocurrency Compass subscribers…our comments and a chart follows.
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Bitcoin has a new short-term counter-trend “buy” signal today per Tom DeMark’s TD Sequential® model, denoted by the “13” on the following daily bar chart (zoom in!). The signal supports a two-week+ rebound, although it is low-conviction because the daily stochastics are not affirming short-term oversold conditions.
We are compelled to highlight the signal because of the model’s timely signals in the past, noting the last “buy” signal from this model was on 6/21 and the last “sell” signal was on 11/9.
The signal would be made higher conviction (as a short-term entry point) if the model yields something called a “1-up” which occurs when we see a close above the close from four days ago, which is more likely toward the end of next week. If a rebound unfolds, resistance is defined by the cloud model pictured near $55.6K.