Analyst Calls Key Indicators Pointing to a Bitcoin Correction

User Avatar

Bitcoin’s price witnessed a pullback on Tuesday amid general bearish sentiment surrounding the crypto market. after the digital asset reached the $69,000 threshold.

Bitcoin could undergo further correction

Following the correction, several predictions from top crypto analysts about a further decline in Bitcoin’s price have surfaced. Cryptocurrency analyst and trader Ali Martinez has highlighted a number of indicators that point to continued price appreciation.

Martinez took to the social media platform X (formerly Twitter) to part his projections with the crypto community. According to Ali Martinez, on Bitcoin’s daily chart, the Tom DeMark (TD) Sequential indicator currently “gave a sell signal.”

The crypto analyst believes that this development deserves to be closely monitored. This is because the indicator has “a solid history of predicting Bitcoin trends” since the beginning of the year.

Bitcoin
TD Sequential indicates a sell signal | Source: Ali Martinez on X

He further pointed out that the indicator suggested a buy signal earlier in January, followed by a 34% increase in Bitcoin’s price. Moreover, the indicator also suggested a sell signal in the middle of last month, after which Bitcoin plummeted by more than 4%.

With the TD Sequential currently developing a sell signal, BTC could undergo a correction in the short term. However, there is no guarantee that the price of BTC will undergo a correction after the signal.

Martinez also underlined the pointer’s accuracy in predicting BTC’s price movement, which he said “remarkably insane.” In an earlier projection, Martinez claimed that BTC has fallen “1.5% to 4.7% every time the indicator recommends a sell” since February 15.

See also  Bitcoin: Rising Transactions Cause Speculation, More Inside

As a result, short-term traders must carefully observe the trend to position themselves for future profits. So far, some market watchers believe that Bitcoin’s retracement was necessary, and they view the fall as a positive step.

BTC could see a 20% decline this time around

Martinez isn’t the only expert who has predicted a near-term setback. Crypto Jelle has that too shared his negative forecast for BTC, pointing to a 20% price correction.

Jelle noted as BTC approaches its price highest ever of $69,000, “there will be setbacks along the way.” He further stated that this time it seems that BTC could fall by 20%.

The crypto analyst has thus urged not to be shocked by the outcome, telling them that they will “benefit” from the development when it occurs. This is because Jelle believes that the key to success in the crypto world is patience.

Currently, the price of Bitcoin has fallen by over 2% in the last 24 hours and is trading just above $66,000. Despite the price drop, trading volume has increased by more than 37%, while the market capitalization has fallen by 2%.

Bitcoin
BTC is trading at $66,045 on the 1D chart | Source: BTCUSDT on Tradingview.com

Featured image from iStock, chart from Tradingview.com

Disclaimer: The article is for educational purposes only. It does not represent NewsBTC’s views on buying, selling or holding investments and of course investing involves risks. You are advised to conduct your own research before making any investment decisions. Use the information on this website entirely at your own risk.

Source link

Share This Article
Leave a comment