According to analysts, Bitcoin seems to be preparing for a bull trend as the data shows signs of increasing demand and little resistance appears ahead. Also, the Tom DeMark (TD) Sequential indicator is giving a buy signal on Bitcoin’s bi-weekly chart. As Kriptokoin.com, we have previously reported in this article, over 25 cryptocurrencies and Bitcoin signals of the indicator in question have been correct in recent years.
Bitcoin (BTC) has upside potential according to the indicator
Bitcoin has regained a crucial support level and seems to have plenty of room to rise. The leading cryptocurrency has gained more than 4,000 points in market capitalization, up more than 10% in the past three days. The sudden price increase seems to be related to the increase in demand in the spot markets. On-chain analyst Willy Woo reported a spike in BTC purchases data of $1.2 billion.
From a technical standpoint, the Tom DeMark (TD) Sequential indicator is giving a buy signal on Bitcoin’s bi-weekly chart. Analysts point out that the bullish pattern developed as a red nine candlestick, further buying pressure could help confirm the optimistic outlook, which could lead to a two- to eight-week rally.
Source: TradingView Trading history indicates that the leading coin has been able to claim a critical support level after the recent rally. IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model shows that as long as Bitcoin continues to trade above $39,500, there will be a chance to rise to $46,350. This is the most important area of resistance ahead, as over 865,500 addresses previously bought around 705,000 BTC at this price level.
Source: IntoTheBlock TD It is worth noting that the Sequential indicator accurately predicts market highs and lows on Bitcoin’s bi-weekly chart. He was even able to predict the November 2021 peak, when BTC was trading at an all-time high of around $69,000, adding credibility to the optimistic outlook.
Still, analysts remind that a firm close below $39,500 every other week could spell trouble for the leading cryptocurrency. According to analysts, breaching such a critical support area could send Bitcoin to $34,400 and if this level is not held, a capitulation event could occur.
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