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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The post Crypto Trader Issues Bitcoin Alert, Says BTC Could Crash by up to 47% From Current Level – Here’s Why appeared first on The Daily Hodl.
