Amidst Bitcoin‘s price hovering around the $63,800 threshold, investors find themselves on tenterhooks as notable crypto analyst Ali Martinez sheds light on a disquieting trend unfolding within the charts. Martinez’s latest assessment of the primary cryptocurrency’s performance reveals the emergence of two significant sell signals, hinting at potential downward pressure on the digital asset.
The first signal of concern arises from the formation of a “death cross” between the 50 and 100 Simple Moving Averages (SMA) on Bitcoin’s 12-hour chart. This foreboding pattern materializes when the short-term moving average, in this instance the 50-day SMA, descends beneath the long-term moving average of either 100 or 200 days. Historically, the appearance of the death cross has been interpreted as a bearish indicator, indicating a possible transition in momentum from bullish to bearish sentiment.
Further exacerbating apprehensions is the emergence of a red 9 candlestick as per the TD Sequential indicator. Conceived by market analyst Thomas DeMark, the TD Sequential serves as a technical analysis tool aimed at pinpointing potential price exhaustion and trend reversals.
In this particular scenario, the presence of the red 9 candlestick suggests a waning of Bitcoin’s upward momentum, potentially laying the groundwork for a corrective downturn.
The prevailing uncertainty surrounding the cryptocurrency markets is underscored by Bitcoin’s current price, which has receded by 16% from its record high. As enthusiasts of digital currencies keenly observe the evolving price dynamics, attention is now fixated on whether Bitcoin will succumb to the ominous indications of an impending death cross or defy expectations by staging a bullish resurgence.
