The Bitcoin (BTC) price rose to every bit high every bit $9,065 on May 1, after peaking at $9,481 the previous twenty-four hours. The 35% increase in the price of BTC within ix days led a highly accurate sell signal called the TD9 to spark.

TD9, a sell sign that is a part of the TD9 Sequential system, is triggered when the price of an asset increases nine days in a row in a higher place its price iv days prior to the nine-day run.

Equally an example, on the daily timeframe the Bitcoin price closed at $vii,125 on Apr 19. From April 23 to May ane, BTC consistently remained above $seven,125 for nine sequent days, leading the TD9 to calorie-free up.

Bitcoin daily chart prints a TD9. Source: Tradingview

Bitcoin daily chart prints a TD9. Source: Tradingview

Historical data shows that the TD9 point typically leads to a 12 to 20 percent nearly-term pullback in the Bitcoin price. The indicator identifies overextended movements to both the upside and the downside, showing whether BTC is oversold or overbought.

Traders expect a post-halving sell-off for Bitcoin, and TD9 matches the timing

The Bitcoin cake reward halving is expected to occur on May 12 and in previous halvings the Bitcoin price tended to see a sew together prior to the event and then a see a sell-the-news style correction right after information technology.

Traders already expect the 2022 halving to have a similar effect as the impact of the 2022 halving on the toll of BTC.

Cryptocurrency investor and hedge fund manager Logan Han said:

BTC halving right in front end of our noses. Previous halving - BTC made a dip down and then made its run to ATH. If $9,450 was the top of this pre-halving pump, I expect BTC to pull a motion similar to the previous halving.

Bitcoin price fell right after the 2nd halving in 2022. Source: Logan Han

Bitcoin price cruel correct after the 2nd halving in 2022. Source: Logan Han

In the by 2 weeks, the Bitcoin price rose past 40 percent, surging past central levels such as the 200-day simple moving average (SMA) and the 0.618 Fibonacci Retracement level calculated in betwixt $iii,600 and $14,000.

Often, when an asset surpasses key levels in the way BTC did in a short menstruum of time, information technology becomes vulnerable to a steep downtrend in the brusque-term.

Bearish signals suggest a correction looms

The instance for a post-halving sell-off in the cryptocurrency market place is now stronger due to 3 master factors. The recent forty percent vertical rally with no consolidation phases, the emergence of the TD9 indicator, and the overbought condition of BTC.

The Relative Strength Index (RSI) is consistently hovering at 75 percent, which suggests that BTC is overbought afterwards its recent rally. Despite this, technical analysts remain divided on the trajectory of Bitcoin in the upcoming weeks.

The dominance of spot volume over futures solidified the theory that the rally from $iii,600 to $7,000 was primarily led by actual retail demand, indicating that the rally was organic. Simply, the sew from mid-$7,000 to $9,400 was mainly acquired by the futures market, which may suggest that the uptrend is overextended.