After last month’s catastrophic collapse, Bitcoin and the rest of the crypto market has made a strong recovery, nearly doubling in value from the recent extreme low.
But just as the asset class has reached critical resistance, a rough week and a deadly accurate sell signal triggering on a dozen or more individual crypto assets are pointing to yet another major collapse across the cryptocurrency market.
Bitcoin’s Record-Breaking Drop, And The Crazy Crypto Rollercoaster of 2020
The crypto market started off 2020 with a boom.
Bitcoin quickly reached above $10,000, Ethereum had an over 100% rally, Tezos rallied by over 130%, and Chainlink set a new all-time high.
That boom quickly turned to bust, however, once the coronavirus spiraled out of control and the economy and public went into a state of lockdown.
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The fear over what’s to come prompted investors to sell off all assets, including stocks, gold, Bitcoin, and other altcoins.
The stock market suffered the worst drop since 1987, Bitcoin saw the third-worst drop in the asset’s history, and altcoins fell by 70% or more in many cases.
All of the gains of early 2020 were erased, and asset prices fell to new lows.
But once the dust settled, Bitcoin and altcoins made a strong recovery, with the first-ever cryptocurrency nearly doubling from the $3,800 low.
A V-shaped recovery began shortly after the shocking low was put in, taking Bitcoin price to a high of $7,450 and causing the rest of the crypto market to surge.
But just as the asset class has reached an important resistance level, two factors could put an end to the current rally and cause yet another catastrophic collapse.
Next week, the death toll is expected to peak in the United States, possibly causing a second-wave of panic-selling across the stock market and other assets.
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Making matters worse, an incredibly accurate sell signal just triggered on the daily price charts of Bitcoin, and nearly a dozen or so other altcoins, suggesting that the crypto market is in for yet another collapse in the days ahead. The crypto assets that also triggered the signal include Ethereum, Ethereum Classic, Cardano, Binance Coin, Litecoin, Ontology, OmiseGo, Tron, Stellar, and Tezos.
TD 9 Sell Signal Triggers Across Multiple Assets
The signal is a TD 9 “sell signal” triggered on the TD Sequential indicator created by market timing wizard Thomas Demark.
The TD Sequential is just one of may technical analysis indicators created by Demark, and his tools have been used with chilling accuracy.
In the past, the indicator issued a sell signal at the top of Bitcoin‘s rally to $20,000, and again recently when Bitcoin topped out at $10,500 earlier this year. Now, it could be signaling that a top is in once again, however, at much lower prices than those previous examples.
With such an accurate track record, and with so many crypto assets exhibiting the sell signal, a major crash across the crypto could be coming.