Bitcoin is making headlines throughout the finance world as even high-wealth investors are scrambling to learn more about the highest crypto asset and its potential as a store of value. As word spreads not only the 500% rally generating the 2020 ROI but Bitcoin’s long-term price projections, the asset class has attracted experts from all backgrounds.
New gay people have come out to base the Plan B stock-flow model, while others are encouraging believers of the digital gold narrative that has been building momentum. Adding to the current skepticism about the recent rise of the cryptocurrency, market timing wizard Thomas Demark claims the recent uptrend was “exhausted” and could lead to a reversal. This is why this call is something that crypto investors must be wary of, but also why there is still hope for the expert to be wrong based on the tool he created himself.
Bitcoin Rally Attracts World’s Best Analysts, New Wealthy Investors
Bitcoin is no longer an asset stuck in the dark shadows of the internet or the focus of retail investors alone. The world of finance, Wall Street, and institutional investors are now paying attention, and the game has changed for the rare cryptocurrency.
Corporations now own nearly one million BTC from the small 21 million coins supply, and the trend where companies are protecting their treasures using the asset has just begun.
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There is not even enough BTC for all the millionaires in the world to buy one whole coin, and now even billionaires are starting to grab them as fast as they can.
It has caused an increase that led to a 500% ROI in 2020 – a year when money is a problem for everyone, and how to protect someone’s wealth has become a vital concern.
Bitcoin’s limited supply and reward mechanism ensures it fits this role well, and the world is now realizing this. The asset has just set a new price record, and in the past, once this happens, the train leaves the station and the cryptocurrency doesn’t stop pumping until a new peak is in.
Even with all this happening, market timing expert Thomas Demark thinks the trend is “exhausted” and that a reversal could soon follow.
There is an aggressive TD 13 sell countdown on BTCUSD using TJ Demark's Symbolik | Source: BTCUSD on Symbolik.com
Thomas Demark Creator’s Sequential TD warns Of Cryptocurrency Trend Fatigue
Demark is the creator of the TD Sequential indicator on which crypto traders have come to swear. Using his son’s Symbolik technical analysis software in the photo above, Demark sees a signal that has also appeared alongside “exactly December 18, 2017 high, exact low day December 14, 2018, and then exactly on June 26, 2019. ”
Demark also calls attention to an interesting mathematical measurement taken from June 26, 2019, high to the recent low Black Tuesday March 2020. Pulling the 2020 swing low from the 2019 peak, led to a measured $ 9,985. Doubling this number amounts to $ 19,970. Adding $ 19,970 to the lowly Black Thursday takes the price per BTC at just the 2020 high of $ 23,750.
Could math and Fibonacci extensions predict the outcome of this rally? | Source: BTCUSD on TradingView.com
The highest is also the 2 Fibonacci extension of the move from 2019 to 2020, which fits Demark’s math equation. The signal, which Demark warns, is the “sell down” signal 13, which says that a trend is becoming exhausted.
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Demark claims that the same signal appeared at peak 2017, bottom 2018, top 2019, and is now back. Other market timing experts such as the late WD Gann believed that markets typically peaked and bottomed in December, which would also be in line with Demark theory. Interestingly, Gann’s market timing tools complement Demark’s idea, with each major pivot point reached coinciding with time-based Fibonacci levels.
Other market timing tools from Gann back up Demark's call for a pivot | Source: BTCUSD on TradingView.com
Demark admits “it seems scandalous to take such a stance” on the powerful inclined asset, but believes in the signals of its “combined models.”
“Clearly, there is no certainty in the forecasting business and it is often advisable to wait for confirmation of a trend completion rather than make a bold prediction,” he added.
Demark concluded that while the signals are strong and have been effective in the past, it cannot rule out that the fatigue signals will be ignored as more and more investors pile up on the scarce digital asset.
But Bitcoin might totally ignore trend exhaustion and become even stronger | Source: BTCUSD on TradingView.com
The last chart depicting Demark sequential indicator TD is known, on monthly schedules showing what happens when the signal is ignored.
Bitcoin is currently on TD 9 sales on monthly schedules, after what is essentially a positive nine months of uptrend. In the past, when Bitcoin triggered the nine on monthly schedules, the asset’s bull market was about to begin.
When the sales calculation reached 13, by then it was too late and the asset was fully parabolic, and FOMO was carrying the cryptocurrency to much greater heights immediately after.
Using the tool as a sales signal has long been effective during the bear market, but during a bull market, the results are remarkably different. How Bitcoin responds to Demark’s latest signal will either guide you back to trend-setting or confirm that the trend is unobstructed for the time being.
Featured image from Deposit Photos, Charts from TradingView.com