DeMark Indicators Signal Crypto Bottom: Ethereum & Bitcoin Analysis

Key DeMark Signals for Ethereum and Bitcoin

Kevin McCormack’s analysis highlights critical exhaustion signals on Ethereum and Bitcoin charts. The DeMark Sequential and Combo indicators—widely used by institutional traders—show compelling buy setups. Ethereum’s Combo indicator hit a selling exhaustion 13 on November 17th, signaling a potential reversal if prices close above that day’s high by month-end. Bitcoin shows a 9 buy setup, requiring a price flip above immediate highs within four trading days.

Institutional Backing and Track Record

These indicators dominate Bloomberg Terminal’s top-selling tools, with a four-year history of accuracy in crypto markets. The weekly Combo 13 perfectly identified Bitcoin’s 2021 all-time high, while earlier 13 signals in 2020-2022 preceded major reversals. As McCormack notes: "Retail traders overlook these, but pros rely on them for exhaustion points."

Trading Triggers and Risk Zones

Ethereum’s Bullish Confluence

Combo 13 Exhaustion: Requires close above November 17th high (~$3,600) by November 30th.
Propulsion Trigger: Activated November 19th, supporting a bounce to $3,600+.
Historical Precision: Weekly 9 sell setups previously anticipated 30%+ declines.

Bitcoin’s High-Stakes Inflection

9 Buy Setup: Price must flip above November 19th high within four days.
Absolute Retracement Risk: Failure to flip risks drop to $78,000 (12% downside).
Propulsion Signal: Calls for rally to $103,000 if confirmed.

Critical Divergence: Solana shows NO buy signals, breaking crypto correlation.

Action Plan for Traders

Confirm Price Flips:
- Ethereum: Daily close above November 17th high.
- Bitcoin: Close above November 19th high within four sessions.
Set Stop-Losses:
- Bitcoin: Below $78,000 retracement level invalidates bullish case.
Correlation Check: Monitor S&P 500 seasonality (McCormack’s prior analysis suggests risk-on rally).

Why Solana Lags

Unlike Ethereum/Bitcoin, Solana breached its November 13th 9-buy setup without exhaustion signals. This divergence suggests focusing on leaders for bounce plays.

Tools for Verification

Bloomberg Terminal: Access real-time DeMark indicators (industry standard).
TradingView: Retail alternative; apply "TD Sequential" and "TD Combo" scripts.
Backtesting: Test 9/13 signals against 2020-2023 crypto data for strategy validation.

"Institutional tools like DeMark provide edges, but always wait for the price flip," McCormack emphasizes.

Bottom Line: Nimble Opportunity

DeMark signals align with seasonal market rallies, offering asymmetric setups. Ethereum’s setup appears stronger, but Bitcoin’s $10,000+ volatility window demands tight risk management.

Your Move: Which level—Ethereum’s $3,600 or Bitcoin’s $78,000—will you monitor closest? Share your plan below!