Failed Bearish Signal Could Send Bitcoin To $85K Next Month

Bitcoin recently issued a bearish signal, which ultimately failed to produce a significant pullback.

Due to the technical failure, historical data suggests that in just one month, BTCUSD could reach a new all-time high and reach a target of $85,000 per coin. Here’s why.

Why Failed Bearish Techniques Produce Bullish Breakouts

In technical analysis, some patterns are considered typically bearish or bullish. For example, the ascending triangle is a typically bullish pattern, but only breaks upwards 63% of the time. For the remaining 37%, the trend breaks down into a downward trend.

Due to the nature of how orders and stop losses are stacked on either side of a pattern’s trendlines, a failed bullish pattern can be extremely bearish and vice versa. Analyzing further, since the trend was visibly bullish, it could have attracted longer positioning which is forced to unfold to the downside.

Recently, Bitcoin price gave a bearish TD9 sell pattern on the weekly TD Sequential. However, no major corrections followed. When this happens, it often results in significant movement in the opposite direction of the signal.

In simpler terms, the failure of the TD9 sales setup could mean a massive upside. And how high the price could go and how quickly it could shock you.

Bitcoin failed at $85,000 bearish signal

Could BTC reach $85K in four weeks? | BTCUSD on

Market Timing Tool Hints at Bitcoin Rally to $85,000

The TD Sequential is a market timing indicator developed by Thomas Demark. A TD9 pattern or TD13 countdown is a specific sequence of candles that signal trend exhaustion.

In 2020, when this same signal failed, Bitcoin reached new all-time highs above $20,000 and beyond. It rose 143% in the four weeks after the signal and over 300% more in total when all was said and done.

If the same magnitude move followed the recent failure of the TD9 sell setup, Bitcoin price would reach $85,000 by the end of December. Another 300% beyond BTCUSD’s current all-time high would take the leading cryptocurrency to over $200,000 per coin in total.

In terms of lower prices, the indicator also provides TDST support and resistance levels. These levels go up and down with each completed TD setup. This latest setup pushed the TDST floor price support from $10,000 to $25,000, reducing the chances of BTCUSD trading below that price again.

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