Crypto analyst Ali Martinez believes that Bitcoin will soon lose all recorded gains and experience a price drop unless a certain condition is met.
Popular crypto analyst Ali Martinez has painted a negative picture of the possible Bitcoin price trajectory in the next 24 hours. In the last day, the leading cryptocurrency rose 0.7% and briefly traded above the $30,000 mark. However, Martínez believes that the cryptocurrency market leader will soon lose all of these recorded gains and experience a price drop unless a certain condition is met.
Analyst Points to $31,560 as Crucial Zone for Bitcoin Traders
On Sunday, Ali Martinez posted on X in an attempt to gauge the formation of a possible head and shoulders pattern on Bitcoin’s daily chart. Generally, these patterns indicate that market bulls are struggling to push the price of an asset higher.
Martínez claims that the daily BTC indicator chart points to an incoming price drop during the next day. He noted that the TD sequential indicator, designed to identify potential trend reversal points, displays a green 9 candle, which can be interpreted as a potential sell signal.
His whole post on X goes like this:
“There’s a lot of talk around a potential head-and-shoulders pattern forming in #Bitcoin daily chart. Let’s dissect it!
The $BTC daily chart hints at a possible sell signal emerging tomorrow, based on the TD Sequential indicator flashing a green 9 candlestick. Not to mention, the RSI reached 74.21 — a level triggering sharp corrections since March.
An impending price correction appears to be on the horizon unless #BTC manages to clock a daily candlestick close above $31,560.”
The veteran crypto analyst also points to the relative strength index RSI, another indicator intended to recognize trend changes. Martinez stated that the RSI on BTC’s daily chart has crossed 74.21, a level known to induce “sharp” price pullbacks since March.
However, Martínez has added a clause to his latest price prediction. The analyst claimed that BTC could avoid this incoming sell-off, but only if the token closes its current daily candle above the $31,560 price mark.
Currently, BTC is trading at $29,960, with a gain of 11.6% in the last week. Meanwhile, the token’s daily trading volume has currently increased by 18.25%. With a market capitalization of $584.38 billion, Bitcoin remains the most valuable crypto asset in the world.
Growing Investor Confidence in Bitcoin
In other news, there appears to be a high level of growing confidence in Bitcoin at the moment. Recent data from IntoTheBlock revealed a notable increase in long-term Bitcoin holdings, as 80% of BTC in circulation has not moved from an investor’s wallet in the last six months.
A more recent post, dated October 22, points out that “in a financial climate rattled by the Federal Reserve’s policies and shaky bond markets, Bitcoin is making its own rules.”
Furthermore, a crypto analyst with the username X Slim Daddy also shared that the total balance of BTC owned by hodlers, that is, investors who have held Bitcoin for more than a year, has recently reached a new height of 13.45 million Bitcoin.
The analyst believes that Bitcoin’s continued accumulation has been the driving force behind the token’s strong price performance despite a series of turbulent market events. The first cryptocurrency remained in the headlines in 2023, with a staggering 70% gain since the beginning of the year.
By Audy Castaneda
