With Bitcoin collapsing by 5% in the past days, moving from $7,150 to $6,750 as of the time of writing this, traders have once again flipped decidedly bearish on cryptocurrencies.<\/p>\n
They fear that this latest move under the key support of $7,000 will precede a strong capitulation event, one reminiscent of the collapse from $6,000 to $3,000 seen in late-2018.<\/p>\n
What’s ironic, though, is that this latest drop has resulted in the Bitcoin chart printing a key bullish technical signal purportedly that was seen when BTC found a macro bottom in December 2018.<\/p>\n
Thomas Thornton, a hedge fund services specialist and market analyst, recently posted the chart below to Twitter, showing that a Bloomberg chart of Bitcoin with the TD Sequential Combo indicator suggests that BTC’s current candle is on a “buy 13.”<\/p>\n
\nBitcoin with new DeMark Combo and Sequential buy Countdown 13's. Needed to confirm is a price flip up (new 4 day closing high) pic.twitter.com\/7SCPVxxFfU<\/a><\/p>\n
— Thomas Thornton (@TommyThornton) December 17, 2019<\/a><\/p><\/blockquote>\n