Cash News
Analyst and trader Ali Martinez is leaning bearish on Bitcoin (BTC) as the flagship crypto asset sits around 20% below the all-time high.
Martinez tells his 71,000 followers on the social media platform X that Bitcoin has fallen below a key moving average, a development which could lead to the largest crypto asset by market cap falling by around 47% from the current price to levels last witnessed in October of 2023.
“Bitcoin trading above its 200-day moving average often signals strong returns, while dropping below it can lead to sharp corrections.
BTC has now been below this key level, at $64,000, for over a month, hinting at a potential drop towards its Realized Price of $31,500!”
Martinez further says that the exchange volume momentum metric for Bitcoin is also flashing a bearish signal. The exchange volume momentum metric compares the monthly average of BTC’s exchange inflows and outflows to its yearly average, with a decrease hinting at lower investor interest and an increase signaling rising investor interest.
Says Martinez,
“The Bitcoin Exchange Volume Momentum shows a decline in on-chain activity tied to exchanges, signaling lower investor interest in BTC.”
The crypto trader and analyst also says that the Tom DeMark (TD) Sequential indicator has flashed a sell signal for Bitcoin on the 12-hour time frame in anticipation of a “brief correction.” The TD Sequential indicator is used in technical analysis to determine potential bullish or bearish reversal points.
Bitcoin is trading at $60,442 at time of writing, up over 4% on the day.
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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