The crypto asset known as theta was the hottest altcoin in the room in May, but false rumors of a partnership with Google sparked a heavy sell-off.
The downside of the cryptocurrency appears to continue as two high-precision sell signals were triggered in the weekly timeframe in both the USD and BTC trading pairs.
Theta is pumping almost 400% against the dollar, 350% against Bitcoin in May
In early May until the peak of the pump, the altcoin known as theta rebounded by over 360% against Bitcoin. There was a corresponding increase of nearly 400% in the USD trading pair.
The rally was fueled by the spread of false information about a partnership with Google. However, it later emerged that the partnership was simply theta, which relied on Google’s cloud services on the client side.
While there is no real partnership, the massive surge has brought back memories of the crypto hype bubble.
Related reading | Theta Cryptocurrency Crashes 50% as Traders Question Google Partnership
During this time, it wasn’t uncommon for altcoins to rebound hundreds of percent against Bitcoin or the dollar.
While those days are long gone and money won’t be easy to come by in the next cycle, the recent theta explosion gives much-needed hope that a return to a crypto bull market could come soon.
But before a sustained uptrend or sustained uptrend begins, Theta faces a major correction, according to a duo of high-precision sell signals across the THETAUSD and THETABTC trading pairs.
USD and BTC sell signals could cause the attractive altcoin to continue falling
In the past month, few altcoins have been discussed as highly as theta. The asset quickly became the hottest token in the crypto industry.
But once overzealous investors realized that the news about the partnership was not an event, a sell-off took a huge toll on profits.
Given a number of sales constellations signaled by the TD Sequential indicator on weekly time frames, another downtrend is also very likely.
The TD Sequential Indicator is a market timing tool developed by Thomas Demark. After a certain sequence of candles has formed, it is often a sign that a reversal or pullback is near.
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The signal has cited many bitcoin and altcoin tops and lows in recent years, all the way back to Bitcoin’s all-time high. It has been proven to be a tool that should never be underestimated.
The 9-selling setup has popped up on both THETAUSD and THETABTC price charts, suggesting that not only is USD expected to collapse, but that altcoin will underperform Bitcoin in the coming days.
TD 9 sell signals have popped up on most cryptocurrency investments including Bitcoin, Ethereum, Chainlink, and countless others. The best performer in the crypto market, Theta, who also shares this signal, bodes badly for the entire asset class.
Crypto as a whole often follows Bitcoin’s lead, and while sentiment and fundamentals have never been more optimistic for Bitcoin, the asset is also facing its strongest resistance to date.
Should Bitcoin crash again before a clear breakout of the downtrend, a lower high could trigger extreme panic and a sell-off will soon follow.
A crash of Bitcoin from here would drag the entire crypto market with it, including theta.