The Tom DeMark Sequential indicator has flashed sell signals on Bitcoin ( $60,115.00 ) and Ethereum ( $4,455.78 ) ’s daily charts.
Despite the pessimistic outlook, transaction history shows BTC faces no resistance until $42,600.
Likewise, ETH may advance to $2,500 before it retraces towards $2,000.
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Bitcoin ( $60,115.00 ) and Ethereum ( $4,455.78 ) continue to make higher highs, but one technical indicator suggests that a correction could be coming.
Bitcoin ( $60,115.00 ) May Pump Before the Dump
Bitcoin ( $60,115.00 ) and Ethereum ( $4,455.78 ) may be due for a correction.
Bitcoin ( $60,115.00 ) has seen its price surge by more than 37% over the last week, going from a low of $29,800 to hit a high of almost $41,000.
The impressive uptrend marked one of the best winning streaks that Bitcoin ( $60,115.00 ) has experienced since its downturn began in mid-April. The leading cryptocurrency also closed its eighth consecutive green day for the first time since December 2020.
The Tom DeMark (TD) Sequential suggests that Bitcoin ( $60,115.00 ) is primed to retrace despite the significant gains it has incurred. This technical indicator presented a sell signal in the form of a green nine candlestick on BTC’s daily chart.
The bearish formation is indicative of a correction of one to four daily candlesticks before the uptrend resumes.
IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model shows that there isn’t any critical resistance level on top of Bitcoin ( $60,115.00 ) that could prevent it from advancing further. The only major supply zone sits between $42,330 and $43,530. Here, roughly 70,000 addresses have previously purchased nearly 363,000 BTC.
Given the lack of opposition ahead, the flagship cryptocurrency may continue rising toward the $42,330-$43,530 range before the TD’s bearish outlook materializes.
A spike in profit-taking anywhere between the current price levels and the overhead resistance could result in a pullback to the demand zone between $37,470 and $38,670. The IOMAP model reveals that this is the most significant support barrier underneath Bitcoin ( $60,115.00 ) as more than 780,000 addresses bought 570,000 BTC around this price point.
Ethereum ( $4,455.78 ) Follows the Bitcoin ( $60,115.00 ) ’s Path
Like Bitcoin ( $60,115.00 ) , Ethereum ( $4,455.78 ) seems bound for a downswing before it continues posting higher highs. The TD Sequential suggests that ETH is trading at overbought territory after flashing a sell signal in the form of a green nine candlestick on the daily chart.
A spike in selling pressure could see ETH shed some of the 36.5% gains it posted over the last week.
Transaction history reveals that the most significant support barrier underneath Ethereum ( $4,455.78 ) lies between $1,790 and $2,130. Here, more than 3.5 million addresses have previously purchased nearly 19 million ETH.
The $1,950 demand wall may have the strength to prevent prices from falling further and serve as a rebound zone for ETH.
The IOMAP model also shows that Ethereum ( $4,455.78 ) does not face any significant resistance until $2,475.
Therefore, ETH is well-positioned to advance toward this level before the TD’s cell signal gets validated. Only a rejection from the overhead resistance is likely to result in a sell-off toward the underlying support that extends from $1,790 to $2,130.
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