Sell-off at the Bitcoin and Altcoins at the Door By Key Indicator

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Sell-off at the Bitcoin and Altcoins at the Door By Key Indicator

Bitcoin and cryptocurrency market experienced a significant recovery after the declines in the past weeks. On Saturday, Bitcoin surged up to $ 9,700. Afterwards, there were several points of decline.Ethereum has also had a major attack and has increased more than 10% over the 24-hour timeframe over the weekend.This recovery process was enough to convince many traders that a bull run would take place, but a key indicator suggests that the sell-off process for Bitcoin and cryptocurrencies is at the door.

Does Sell-off Come in Bitcoins and Altcoins?

A famous trader shares the image below and states that a sell-off process for cryptocurrencies such as Bitcoin, Ethereum and Chainlink has been entered.Trader explains that while some of the assets will go into a sell-off process, most will see their weekly highs, but 80% have a solid image.

Bitcoin and other top crypto price chart from Moe_Mentum_ on Twitter

Sales setups are shown by the fact that all assets in the image are printing a Tom Demark Sequential “8” candle. Tom Demark Ranking is expressed as a time-based indicator that creates “8,” “9” and “13” candles when an asset is close to a breakpoint in the trend.In addition to the feeling of falling, Bitcoin and other high-end cryptocurrencies make this “perfect sales setup” just below key resistance levels.

It is stated that this situation is very important especially for BTC.Bitcoin currently ranks at $ 9,500, just a few hundred dollars below its substantial $ 10,000 to $ 500 resistance.Rejection at these levels can mean disaster for bulls. Because if this happens, it means that BTC creates a lower height in a macro time frame. As seen in the past year, consecutive low levels suggest the macro downtrend.

Foundations are in favor of BTC

The foundations are in favor of the bulls, despite the downward technical analysis depicted above.Blockcha analytical firm Glassno approximately 18.5 million in the movement said in a statement recently BTC does not act in more than a year of 60% and the investor’s hodling behavior found that increasing steadily.

Chart of Bitcoin investor habits from crypto analytics firm Glassnode (@Glassnode on Twitter).  The image was shared on May 29th, 2020.

This was the case just before the stage in 2017, when BTC rose from $ 1,000 to $ 20,000.In addition, the Chinese yuan continued to fall against the US dollar on expectations of sanctions and withdrawals. The response comes after the mainland Chinese government started the process of imposing a new security law on Hong Kong.

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