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Bitcoin He did a good job. In the past few days after seeing a strong decline in the first two weeks of September. This rally began in the middle of this week after The Federal Reserve has decided to lower the benchmark. The US Federal Reserve cut interest rates by 50 basis points, a move that has proven positive for cryptocurrencies.
It is worth noting that this rise was already expected by a few cryptocurrency analysts through technical indicators. Among them is Ali Martinez, an expert at TD Sequential. However, in an interesting turn of events, the analyst highlighted the case for investors to “take some profits,” a sign of a possible price correction in the future.
Bitcoin Rise Analysis
Bitcoin, which struggled to gain momentum earlier in the month, entered a strong bull run that began to take shape mid-week. This rally saw Bitcoin break through the $63,000 level once again. Increase its market dominanceE. Moreover, the rally peaked at $63,830, reflecting an increase of about 20.77% from its low of $52,827 on September 6.
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However, despite the current optimism surrounding Bitcoin’s price action, Martinez has issued a word of caution to investors. In a post shared on social media platform X, Martinez highlighted that TD Sequential, a tool he frequently uses to analyze market trends, is now indicating a possible price correction near the $63,700 level.
Martinez noted that the same TD Sequential, which issued a buy signal at $57,400 before Bitcoin’s recent rally, is now warning of a potential pullback. This suggests that while the recent rally was remarkable, the market may be approaching a critical juncture where prices could fall.
TD Sequential has told you to buy. #Bitcoin At $57,400, you are now being asked to book some profits at $63,700! pic.twitter.com/0h1yNowkae
— Ali (@ali_charts) September 20, 2024
Is it time to sell?
Looking at Bitcoin’s price action since July, the $63,000 level, which acted as a demand block earlier in the year, served as the beginning of a resistance level during the price rally. However, while the TD Sequential indicator is pointing to a potential price correction, Bitcoin bulls are still testing the Confirm the continuation of the march.
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according to Another analysis By Ali Martinez Bitcoin is now testing the 200-day simple moving average, a critical level to confirm a price rally. History has shown that failure to break above the 200-day simple moving average has led to significant corrections in the past. If history repeats itself, this could lead to a correction towards $40,000 before the end of the year.
Recent market dynamics and fundamentals have shown that Bitcoin is now in a better position than it has been in the past. There are now bullish catalysts within the ecosystem, such as spot Bitcoin ETFs, that could prevent a correction of this magnitude. Also, Monthly close in green in September It may pave the way for a better green October, leading to a continued rally in October.
However, the $63,000 price levels and the 200 SMA at $63,900 are important to watch for a move towards Bitcoin.
Featured image created using Dall.E, chart from Tradingview.com