The U.S. stock marketplace is at a major pivotal point as a TD9 sell indicator has lit up while the Dow Jones remains at the 0.618 Fibonnaci level. There is a stiff possibility that a pullback of equities would interpret to increased selling pressure on Bitcoin.

Fibonacci and TD9: a roughshod combination for predicting corrective phases

The TD sequential is an indicator that identifies a turning point in the price trend of an asset or an index. Essentially, on whatsoever time frame, if the chart of an asset shows nine consecutive candles above or below the closure of four candles prior, then it prints a TD9.

For instance, in 2022, a TD sequential chart by Tone Vays showed the Bitcoin price flashing nine sequent candles on a 4-60 minutes chart that was above the closure of four candles before the nine candles. Since the price increased, it indicated a TD9 sell signal.

Tone Vays' TD Sequential Bitcoin chart. Source: Hackernoon

Tone Vays' TD Sequential Bitcoin chart. Source: Hackernoon

Currently, the Dow Jones Industrial Average (DJIA) is similarly showing a TD9 on the 4-hour nautical chart. On college time frame charts, it is yet non demonstrating a clear TD9 sell signal. This would indicate that selling pressure is mounting and information technology is portraying early on signs of a potential reversal to see a bearish retest of contempo lows.

Dow Jones Industrial Average 4-hour chart prints TD9. Source: TradingView

Dow Jones Industrial Average iv-hour chart prints TD9. Source: TradingView

The about recent TD9 of the Dow Jones could be considered every bit a stronger sell signal than a normal TD9 because information technology is complemented with an overhanging resistance in a Fibonacci Retracement.

In a Fibonacci system, the 0.618 level indicates a reversal point in a price range. It typically decides whether an asset or an alphabetize similar Bitcoin or the Dow remains in a downtrend or breaks out to see an extended rally.

The Dow is slightly below the 0.618 Fibonacci level, which could mean that there is an overhead resistance that may temporarily halt the recovery of the U.South. stock market.

With 2 widely adopted technical indicators pointing toward the resumption of a bearish trend for the Dow Jones, the Bitcoin cost could encounter a retest of the $4,000 to $v,000 range in the near-term if the frantic sell-off of major nugget classes continue.

TD9 has been accurate for both Bitcoin and Dow in 2022

On college time frames, the TD9 betoken tends to exist highly accurate. The last fourth dimension the Dow Jones saw a TD9 on a high time frame was on the daily chart on March eighteen as a buy bespeak. Since then, the Dow rallied by more than 27 percentage in a single calendar month.

The TD9 indicator tends to be accurate on high time frames because it requires 13 candles to close within a certain structure. For example, on a daily chart, 13 candles represents 13 days, then it evaluates a relatively longer price trend than other technical indicators.

Dow Jones Industrial Average chart. Source: Tradingview

Dow Jones Industrial Average nautical chart. Source: Tradingview

Whether the TD9 on a 4-hour Dow chart volition eventually lead to a 9 on the daily chart remains to exist seen. Simply, it coincides with the failed attempts of Bitcoin to pause out of the $7,200 to $7,400 resistance area in the by two weeks, showing stagnancy.