DeMark’s indicators place great importance on the number of days, which don’t have to be consecutive, in which there was a close lower than the close two days ago. Subject to various conditions, when the countdown reaches 13, a buy signal is triggered. (The opposite applies to sell signals.) Put more simply, his analysis looks for both overbought and oversold signals.
In an analysis provided exclusively to MarketWatch, DeMark says lasting damage has been done because bitcoin has fallen more than 50% from its peak. In prior declines, bitcoin held the 50% retracement levels.
See earlier story: The technician who called the 2020 market bottom says a ‘shocking rally’ is in store
“Typically, structural long term damage is done to an uptrend when a retracement exceeds 56%,” says DeMark, the founder and CEO of DeMark Analytics and a consultant to hedge-fund manager Steven A. Cohen. “Such breakdowns bespeak a high probability recovery to the all-time bitcoin highs will require many years,...
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