Popular crypto analyst Ali Martinez has painted a negative picture of the possible bitcoin price trajectory in the next 24 hours. In the last day, the leading cryptocurrency rose 0.7% and briefly traded above the $30,000 mark. However, Martínez believes that the cryptocurrency market leader will soon lose all of these recorded gains and experience a price drop unless a certain condition is met.
Analyst Points to $31,560 as Crucial Zone for bitcoin Traders
On Sunday, Alí Martínez made a post on X in an attempt to evaluate the formation of a possible head and shoulders pattern on the daily bitcoin chart. Generally, these patterns indicate that market bulls are struggling to push the price of an asset higher.
Martínez claims that the indicators on the daily btc chart point to an incoming price drop during the next day. For example, he noted that the TD sequential indicator, designed to identify potential trend reversal points, displays a green 9 candle, which can be interpreted as a possible sell signal.
There is a lot of talk about a possible head and shoulders pattern forming in bitcoin?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>#bitcoin daily chart. Let’s analyze it!
He $btc The daily chart hints at a possible sell signal emerging tomorrow, according to the TD Sequential indicator showing a green candle of 9. Not to mention the… pic.twitter.com/h7CiwRFcHb
—Ali (@ali_charts) October 22, 2023
The veteran crypto analyst also points to the relative strength index RSI, another indicator intended to recognize trend changes. Martinez stated that the RSI on btc‘s daily chart has crossed 74.21, a level known to induce “sharp” price pullbacks since March.
However, Alí Martínez has added a clause to his latest price prediction. The analyst claimed that btc could avoid this incoming sell-off, but only if the token closes its current daily candle above the $31,560 price mark.
At the time of writing, btc is trading at $29,960, with a gain of 11.6% in the last week. Meanwhile, the token’s daily trading volume has currently increased by 18.25%. With a market capitalization of $584.38 billion, bitcoin remains the most valuable crypto asset in the world.
Growing investor confidence in bitcoin
In other news, there appears to be a high level of growing confidence in bitcoin at the moment. Recent data from IntoTheBlock revealed a notable increase in long-term bitcoin holdings, as 80% of btc in circulation has not moved from an investor’s wallet in the last six months.
Recent data shows an increase in long-term bitcoin holdings. Now, 80% of bitcoin is in wallets that have been held for more than 6 months. A clear indicator of the growing confidence among the incumbents!
https://t.co/TqseTKshEu pic.twitter.com/YjfJIpBX51– IntoTheBlock (@intotheblock) October 20, 2023
Additionally, a crypto analyst with the username X Slim Daddy also shared that the total balance of btc owned by hodlers, that is, investors who have held bitcoin for more than a year, has recently reached a new high of 13.45 million bitcoin.
The analyst believes that bitcoin‘s continued accumulation has been the driving force behind the token’s strong price performance despite a series of turbulent market events. The first cryptocurrency remained in the headlines in 2023, with a staggering 70% gain since the beginning of the year.
<img decoding="async" class="aligncenter size-medium" src="https://www.tradingview.com/x/LzMwoLX2/" alt="bitcoin” width=”1479″ height=”913″/>
btc trading at $29,913.04 on the hourly chart | Source: BTCUSDT chart on Tradingview.com
Featured image from IT News Africa, chart from Tradingview
