Bitcoin Bear Trapped? Bitcoin pushes higher – new all-time high possible on the weekend

Bitcoin price has now spent a total of nine days in a short-term uptrend that completes a rebound to the 2021 highs. The sequence of mostly green candles has now triggered and perfected a TD 9 sales setup on the daily timeframe.

However, the signal has repeatedly failed to produce results since the start of the more dominant uptrend in the high time frame. Is it different this time?

Or is this another bear trap embedded in a bull flag that could propel Bitcoin above $ 75,000 per coin? What does technical analysis say about it?

TD 9 sell setup perfected: bear trap or bull on guard?

Bitcoin is back near $ 40,000 and the highs it was traded earlier in the year, but the bulls still have hurdles to overcome before they can move to new highs. Sellers stepped on the scene for the first time since Black Thursday and caused a pit stop to consolidate.

However, even at these prices, there is a massive number of investors buying Crypto Combat Pro.

The leading cryptocurrency by market capitalization was able to complete a run for the top of the trading range, but has so far been held back by the resistance of $ 38,000. As BTC struggles with the resistance, not only has a TD 9 sell setup triggered, but the signal is now perfected too.

TD 9 sales setup triggers at the top of the bull flag channel | Source: BTCUSDT on
The TD Sequential indicator developed by Thomas Demark is used to time market tops and bottoms. It has worked like a charm for years at spotting trend reversals in cryptocurrencies. Traders who have since relied on the tool could take a short position based on the perfected setup.

Bitcoin bulls target $ 75,000 if the channel breaks out

The theory behind the tool is that after a sequence of price increases, the trend should approach a point of exhaustion and be near a point where a trend reversal is likely.

The problem for those who are bearish on Bitcoin or take short positions based on the indicator is that it has failed repeatedly since the $ 10,000 breakout and the only setup that has been „perfected“ is a bear trap.

The TD 9 sales setup appears at the top of a bull flag structure. If it’s valid and the pattern is confirmed with an upward breakout, the potential target could see the price per BTC soar up to $ 75,000 within weeks.

If the sell setup is in place instead, a fall to the bottom of the bull flag channel and a return to the lows of the area is possible.

Will the bears fall into the trap or will the trend change for now?