Ali Martinez, an analyst and trader, has turned bearish after Bitcoin’s (BTC), the digital currency flagship asset produced corrective signals.
Martinez informs his 71.200 followers via the social media platform X, that Bitcoin’s value could drop by nearly 9%.
Bitcoin broke the support! “It looks like another $55,000 will be next.”
The lower limit of the parallel channel on the hourly chart is where he finds the $58,100 key support level that has been recently breached as Bitcoin dropped to a new low of $57.633 within the past 24 hours. Bitcoin recovered, and at the time of this writing is currently trading at $60,283, up 3.4% over the past 24 hours.
Martinez warns that BTC’s hourly chart is showing a bearish sign, despite the fact that Bitcoin has now traded above the support channel.
The TD Sequential Indicator presented a buy signal on the Bitcoin hourly chart anticipating a short correction!
In technical analysis, the TD Sequential is used to identify potential points of bullish and bearish reversal.
The MVRV (Market Value to Actual Value) metric of Bitcoin also indicates that it has been in a downward trend for several months.
MVRV is a measure that compares Bitcoin’s current market capitalization to its actual capitalization. (This calculation is based on how much Bitcoin cost when it was purchased). If the MVRV drops below 0, it means that oversold situations exist.
The trader then uses the In/Out Of the Money Around Price (IOMAP), which is a metric that classifies cryptocurrency addresses into three categories: profiting, losing or breaking even. This enables the trader to identify a critical resistance level for the meme Dogecoin.
DOGE has risen 1.5% to $0.101 in 24 hours.
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The post, Trader warns of lower prices for Bitcoin and says BTC remains in a downtrend. Here is his downside target may change as new information becomes available.
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