The cryptocurrency market entered the weekend with a strong push. Bitcoin, the leading crypto, made a successful rally reaching $60,000. However, not all analysts are sure that the bull market has started. The seasoned BTC is bearish as it hovers around 20% below its all-time high. In this context, the analyst predicts that the price will take a deep dive.
The Analyst Points to $31,500 for Bitcoin: Still on the Table!
As you have been following on Kriptokoin.com, the crypto market has gained new momentum. Thus, Bitcoin had a strong performance, reaching $60,000. However, it is doubtful whether BTC bulls will be able to keep it up. Veteran analyst Ali Martinez says that Bitcoin has fallen below an important moving average. This, he says, is a development that could lead BTC to fall about 47% from the current price to levels last seen in October 2023. In this context, the analyst makes the following statement:
Bitcoin trading above its 200-day moving average usually signals strong returns, while a drop below it could lead to sharp corrections. BTC has now been below this key level of $64,000 for more than a month, pointing to a potential decline towards its actual price of $31,500!
Metrics Support BTC’s Bearish Outlook!
Ali Martinez also says that the exchange volume momentum metric for Bitcoin is also bearish. The exchange volume momentum metric compares the monthly average of BTC’s exchange inflows and outflows to its annual average. It also shows that bearish investor interest is decreasing, while bullish investor interest is increasing. “Bitcoin Exchange Volume Momentum shows a decline in on-chain activity tied to exchanges. It also indicates a decline in investor interest in BTC.”
The analyst also says that the Tom DeMark (TD) Sequential indicator gives a sell signal for Bitcoin on the 12-hour timeframe in anticipation of a “short correction”. Analysts use the TD Sequential indicator to identify potential bullish or bearish points in technical analysis.
In addition, the analyst notes in his latest post that this situation has not changed despite Bitcoin’s recent move. “Typically, Bitcoin trading volume increases during a price uptrend and decreases during a downtrend. Currently, BTC trading volume continues to decline. This shows that the price trend has not yet reversed.”
Meanwhile, Bitcoin was trading at $59,794 at the time of writing. The leading cryptocurrency was up 3.55% on the day. It also extended its weekly gains to nearly 10%.
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