After a strong rise over the last several months, momentum in Bitcoin has been waning, prompting one analyst that has thus far been long BTCUSD, to flip neutral.
A break in sideways price action and a return to volatility is expected soon, but which way will the first-ever cryptocurrency head next?
Hedge Fund Manager Prepares to Short Bitcoin Under $9,000 As Momentum Wanes
In February 2020, Bitcoin price broke up through downtrend resistance but failed to hold above $10,000.
On its way back down, news broke the pandemic was going to cause a large strain on the economy due to the lockdown conditions mandated to stop the aggressive spread.
This prompted a catastrophic selloff across cryptocurrencies and the greater financial market. Cryptocurrencies were decimated, the stock market tanked, and even safe-haven assets like gold and silver couldn’t withstand the sudden liquidity crisis.
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After the dust settled, Bitcoin and equities markets began to flourish again. At that time, hedge fund manager Thomas Thornton took a long trade on BTCUSD based on a signal from the TD Sequential indicator made by Thomas DeMark.
He was able to ride the uptrend for significant profits, closing out with one of the recent 13 Countdown signals.
The new DeMark Sequential provides different types of buy or sell setups and signals. The latest sell signal has prompted Thornton to stay neutral on Bitcoin, until either a push higher or a break below $9,000.
According to Thornton, any price action below $9,000 would be a signal to short BTCUSD down to lower prices.
#Bitcoin with new DeMark Sequential sell Countdown 13. No current position – short