Bitcoin Bearish Signal: Analyst Warns Of Potential Drop To $59,000

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As an experienced analyst, I’ve closely followed the cryptocurrency market for years, and I have to admit that Martinez’s warning about a potential correction in Bitcoin’s price is worth taking seriously. His analysis of the two signals – the red candlestick from the TD Sequential and the death cross between the 50 and 100 SMA – are strong indicators of an impending downturn.

As a cryptocurrency analyst and trader with a keen interest in Bitcoin (BTC), I have observed the optimistic outlook surrounding the recent halving event. However, I cannot overlook the potential for a price correction that I predict could bring BTC down to around $59,000.

Potential Declines For Bitcoin

As a financial analyst, I’ve been closely examining Bitcoin’s price movements in the past 12 hours. Based on my analysis, I’ve identified two potential signs of an impending downturn for Bitcoin. These indicators suggest that the cryptocurrency may experience short-term price declines.

Related Reading: Analyst Points To Possible 30% Bitcoin Correction, Calls For Caution

In his analysis, Martinez identified a few warning signs for Bitcoin’s price. One of these indicators was a red candlestick based on Tom DeMark’s Sequential strategy. Furthermore, he noticed the formation of a death cross between the 50-day and 100-day Simple Moving Averages (SMA). Based on these findings, Martinez predicted that Bitcoin could potentially decline to $63,000. He also advised the community to prepare for potential further drops towards $61,000 and $59,000.

Martinez previously pointed out that the TD Sequential indicator on Bitcoin’s 12-hour chart signaled a sell opportunity. This signal emerged due to Bitcoin encountering resistance at its mid-level in a parallel channel. Therefore, he advises caution given the past performance of this indicator and the possibility of Bitcoin dropping below the $65,500 support level.

The expert’s analysis indicates that the trend score for Bitcoin’s hoarding by large investors (whales) has dropped to zero. This implies that these investors may be selling off or evenly distributing their Bitcoins instead of accumulating them presently.

Martinez’s prediction appears to have come true, as Bitcoin is currently trading beneath the mentioned support level. After the price decrease, there has been a significant reduction in Bitcoin’s accumulation.

Over the past few weeks, Bitcoin’s price has stabilized as it failed to maintain its upward trend beyond its record high of $73,000 reached in March. On Thursday, Bitcoin experienced a significant decline, dipping around $63,000. Higher inflation and slower economic growth in the US were cited as possible reasons for this downturn.

BTC’s Path To $1 Million

As a researcher examining the Bitcoin market, I’ve observed some short-term price fluctuations. However, when considering its long-term trajectory, the overall trend remains optimistic. Jack Mallers, CEO of Strike, shares this perspective and anticipates an impressive growth potential for Bitcoin, estimating it could reach as high as $1 million in the future.

As a crypto investor, I’ve been closely following Mallers’ insights on Bitcoin’s future direction after listening to his recent interview with David Lin. He believes that the financial instability in the bond markets, which heavily affects banks, serves as the solid base for his prediction.

Mallers posits that substantial injections of liquidity may be required to save these markets, potentially pushing up the cost of assets such as Bitcoin. He is convinced that Bitcoin’s value will increase due to its scarcity when matched with growing demand.

Currently, Bitcoin is priced at $64,207 during this writing, representing a 0.72% rise in value over the previous 24-hour period. However, it’s worth noting that Bitcoin’s trading volume has decreased by more than 8% within the last day, despite its promising gains.

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2024-04-26 19:42