U.Today - With Bitcoin's price fluctuating around the $63,800 mark, investors are on edge as prominent crypto analyst Ali Martinez highlights a concerning pattern emerging on the charts. According to Martinez's latest update on the main cryptocurrency's performance, two significant sell signals have surfaced, indicating potential downward pressure on the cryptocurrency.
The first signal is the emergence of a "death cross" between the 50 and 100 Simple Moving Averages (SMA) on the Bitcoin 12-hour chart. This ominous pattern occurs when the short-term moving average, in this case, the 50-day one, crosses below the long-term moving average of 100 or 200 days. Historically, the death cross has been viewed as a bearish indicator, signaling a potential shift in momentum from bullish to bearish sentiment.
Source: Ali MartinezAdding to the concern is the appearance of a red 9 candlestick from the TD Sequential indicator. Developed by market analyst Thomas DeMark, the TD Sequential is a technical analysis tool used to identify potential price exhaustion and trend reversals.
In this context, the red 9 candlestick suggests that Bitcoin's upward momentum may be losing steam, potentially paving the way for a corrective move.
What's next for Bitcoin?
Should BTC fail to hold above the crucial support level of $63,300, investors may need to brace themselves for further downside. Martinez warns that a breach of this level could open the door for BTC to test lower support zones at $61,000 or even $59,000.The current price of Bitcoin, down 16% from its all-time high, further underscores the uncertainty surrounding the cryptocurrency markets. As crypto enthusiasts closely monitor the evolving price action, all eyes are now on whether Bitcoin will fold to the ominous signals of the impending death cross or defy expectations with a bullish resurgence.