Analyst and trader Ali Martinez is bearish on Bitcoin (BTC) as the leading cryptocurrency remains roughly 20% below its all-time highs.
Martinez told his 71,000 followers on social media platform X that Bitcoin has fallen below a key moving average, a development that could see the largest crypto asset by market cap fall around 47% from its current price to levels last seen in October 2023.
“When Bitcoin trades above its 200-day moving average, it is often a sign of a strong return, while a drop below it could lead to a sharp correction.
BTC has now been below this key level of $64,000 for over a month, signalling a possible drop towards a realized price of $31,500.
Additionally, Martinez said Bitcoin's trading volume momentum indicator is also sending a bearish signal. The indicator compares the monthly average of BTC inflows and outflows to exchanges with the yearly average, with a decrease suggesting waning investor interest and an increase suggesting increased investor interest.
Martinez says.
“Bitcoin exchange trading volume momentum indicates a decline in exchange-related on-chain activity, signaling waning investor interest in BTC.”
The cryptocurrency trader and analyst also said that the Tom DeMark (TD) Sequential Indicator issued a sell signal for Bitcoin on the 12-hour timeframe in anticipation of a “short-term correction.” The TD Sequential Indicator is used in technical analysis to determine potential bullish or bearish reversal points.
At the time of writing, Bitcoin was trading at $60,442, up more than 4% from the previous day.
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Disclaimer: Opinions expressed on The Daily Hodl are not investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrencies and digital assets. Transfers and transactions are at your own risk and you are responsible for any losses incurred. The Daily Hodl does not recommend buying or selling cryptocurrencies or digital assets and is not an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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