According to U.Today, Bitcoin's price, currently hovering around the $63,800 mark, has investors on edge as crypto analyst Ali Martinez points out a worrying pattern on the charts. Martinez's recent analysis of the leading cryptocurrency's performance reveals two significant sell signals, suggesting possible downward pressure on Bitcoin.
The first signal is the appearance of a 'death cross' between the 50 and 100 Simple Moving Averages (SMA) on the Bitcoin 12-hour chart. This ominous pattern takes place 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 seen as a bearish indicator, hinting at a potential shift in momentum from bullish to bearish sentiment.
Adding to the worry is the emergence of a red 9 candlestick from the TD Sequential indicator. This tool, developed by market analyst Thomas DeMark, is used in technical analysis to identify potential price exhaustion and trend reversals. In this situation, the red 9 candlestick implies that Bitcoin's upward momentum might be waning, potentially setting the stage for a corrective move.
If Bitcoin fails to maintain above the critical support level of $63,300, investors might need to prepare for further downside. Martinez cautions that a breach of this level could pave the way for Bitcoin 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 emphasizes the uncertainty in the cryptocurrency markets. As crypto enthusiasts closely watch the evolving price action, all eyes are now on whether Bitcoin will succumb to the ominous signals of the impending death cross or defy expectations with a bullish resurgence.