Bitcoin Surges 3.5% as Trade Talks Boost Market Confidence, but TD Sequential Warns of Possible Pullback

Bitcoin increased 3.5% over the weekend, and it got to 115,400 as the sentiment of the market turned positive. This surge occurred once the US and China shared a mutual preliminary framework for the talks in Malaysia.

This breakthrough regenerated investor confidence, leading to risk-on behavior in both traditional and digital asset markets. A surge in short liquidations, surpassing $370 million in a single trading day, accompanied the rally.

TD Sequential Flashes Sell Signal on Bitcoin

However, after the impressive performance of the weekend, its technical indicators can be treated with caution. A well-known analyst, Ali_charts, observed that the TD Sequential indicator has given a sell signal on the daily timeframe.

This indicator can be taken as an indicator of an imminent market tightening or correction in the direction of the short term, which suggests that Bitcoin can experience profit-squeezing at the nearest peaks.

The $111,000 level currently serves as the major support, while the resistance ranges from $116,000 to $117,000.

Additionally, traders should monitor the 50-day exponential moving average (EMA50), which is approximately at line $113,400, closely. The relative strength index (RSI) of Bitcoin stands at 55, meaning that the market is not overbought or oversold, and positive and negative volatility is there.

Altcoin Market Reignites as Confidence Builds

The wider crypto market was imitating the Bitcoin wave, and the altcoins were up by up to 10% over the weekend. Market capitalization rebounded to 4 trillion, indicating that investor enthusiasm had returned.

Players in the market see the alleviation of the geopolitical tensions as a driver of further inflows into the digital assets. Better mood, along with positive macroeconomic indications, may serve to maintain this positive trend, as long as Bitcoin does not fall below its short-term support levels.

In the meantime, the traders are juggling optimism and caution to monitor whether the recent upsurge in Bitcoin is to be relegated to a longer-term stance or a short-term overextension before the next trend.