Bitcoin Daily Chart Signals Impending Sell-Off, Analyst Says

Popular crypto analyst Ali Martinez has painted a negative picture of Bitcoin’s possible price trajectory within the next 24 hours. In the last day, the premier cryptocurrency is up by 0.7% and briefly traded above the $30,000 mark. However, Martinez believes the crypto market leader will soon lose all these recorded gains and experience a price dip unless a certain condition is met.

Analyst Stamps $31,560 As Crucial Zone For Bitcoin Traders

On Sunday, Ali Martinez made a post on X in an attempt to evaluate the formation of a potential head-and-shoulders pattern on the Bitcoin daily chart. Generally, such patterns indicate the market bulls are struggling to drive an asset’s price to a higher value. 

Martinez states that indicators on the BTC daily chart are pointing to an incoming price dip within the next day. For example, he noted that the TD sequential indicator, designed to identify possible points of trend reversals, is showing a green 9 candlestick, which can be interpreted as a potential sell signal.

There’s a lot of talk around a potential head-and-shoulders pattern forming in #Bitcoin daily chart. Let’s dissect it!

The $BTC daily chart hints at a possible sell signal emerging tomorrow, based on the TD Sequential indicator flashing a green 9 candlestick. 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 targeted at recognizing trend reversals. Martinez stated the RSI on the BTC daily chart has crossed 74.21, a level known to induce “sharp” price retracements since March. 

However, Ali Martinez has provided a clause to his latest price prediction. The analyst stated that BTC could avoid this incoming sell-off but only if the token closes its current daily candlestick above the $31,560 price mark. 

At the time of writing, BTC is trading at $29,960, with an 11.6% gain in the last week. Meanwhile, the token’s daily trading volume is currently up by 18.25%. With a market cap of $584.38 billion, Bitcoin remains the world’s most valuable crypto asset.

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 circulating BTC has not been moved from an investor wallet in the last six months. 

Recent data shows an uptick in long-term Bitcoin holding. Now, 80% of Bitcoin is in wallets that have held for over 6 months. A clear indicator of growing confidence among holders!
🔗https://t.co/TqseTKshEu pic.twitter.com/YjfJIpBX51

— IntoTheBlock (@intotheblock) October 20, 2023

Furthermore, a crypto analyst with the X username Slim Daddy also shared that the total balance of BTC owned by hodlers, i.e., investors that have held Bitcoin for over a year, has recently reached a new height of 13.45 million Bitcoin. 

The analyst believes the continuous accumulation of Bitcoin has been the driving force behind the token’s robust price performance despite a series of market turbulent events. The maiden cryptocurrency has remained among headlines in 2023, with an astounding gain of 70% since the start of the year. 

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