A noted crypto analyst says Bitcoin (BTC) is gearing up for a recovery based on one key indicator.
In a new strategy session, crypto trader Ali Martinez told his 66,600 followers on social media platform X that the Tom DeMark (TD) Sequential indicator was flashing a buy signal on the crypto king’s hourly chart.
“TD is showing a buy signal on Bitcoin's hourly chart and predicting a bounce on BTC's 1-4 hourly candlesticks!”
The TD Sequential indicator is typically used by traders to determine potential reversal points in an asset.
Martinez noted that historically, the top crypto asset by market cap has recovered in July after a tough month in June.
“Historically, Bitcoin has tended to recover strongly in July after a negative June. Indeed, during this month, BTC saw an average return of 7.98% and a median return of 9.60%.”
However, analysts say that based on current futures positions, Bitcoin's decline may not be over yet.
“Despite Bitcoin’s price volatility, only $280.9M in long positions and $25.4M in short positions have been liquidated. There have been mass liquidation events in the past with over $1B in value! This indicates that either BTC’s decline is not over yet or short positions are about to be liquidated.”
At the time of writing, Bitcoin is trading at $57,534, down 4.8% in the past 24 hours. On July 1, it was trading at $63,322.
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