This Accurate Bitcoin Price Indicator Suggests A Plunge To $8,500 Or Lower

From topping $10,000 on Sunday that revitalized a familiar euphoria, buyers seem to be taking a step back as Bitcoin (BTC) erased 4.31% of those gains as of the time of writing.

The cold reality for avid BTC fans is that the market doesn't move in one direction anymore unless this was December 2017 when prices can jump $2,000 to $3,000 in one day. Today, there are more participants, which include institutional investors who can affect the price of the most popular crypto by shorting through derivatives.

And it's not like the bull run in 2017 spilled over to 2018 and catapulted Bitcoin to new all-time highs. No, that's not the case. What the market saw instead was more than a year-long decline to the point where it soured late buyers from ever partaking in cryptos again in the future. Interesting enough is that an indicator was able to presage that particular reversal before it unfolded.

The TD Sequential Indicator, which was developed by Tom Demark, founder, and CEO of DeMark Analytics, was able to warn investors that BTC might be on the verge of a drop on several occasions and with pinpoint accuracy.

In his interview with Bloomberg, DeMark said that the "13" candle of the TD Sequential was able to foretell a reversal in December 2017 and the same decline that happened when BTC topped $14,000 last year. In a bullish scenario, the indicator also signaled that the low in December 2018 was also about to go the opposite way and it did.

Now, the same "13" candle is on Bitcoin's charts once again, and this was confirmed on Monday.

Thomas Thornton of Hedge Fund Telemetry tweeted, "#BITCOIN DeMark Sequential Countdown 13 today. We recommended selling the long last week with 50% gain from December buy signals."

The indicator works by spotting nine consecutive candles or bars that closed higher or lower than the previous four candles. The buy or sell signals happen if the "8" or "9" candle exceed the highs or lows of the "6" and "7". The candlestick or bar number "13" is also used as a reversal point.

However, the extent to which BTC will plunge is undetermined. There are speculations by other analysts and traders for it to drop to $8,500, but these are based on other technical studies.

Josh Olszewicz of Brave New Coin thinks a $8,500 drop is in the horizon. Another analyst suggested a drop to $7,700, despite the impressive growth of BTC the past weeks.