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HomeCrypto NewsMarketKey Technical Indicator Flashes Bitcoin Buy Signal

Key Technical Indicator Flashes Bitcoin Buy Signal


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Ali Martinez believes we can see a rebound to $23,500.

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Prominent technical analyst Ali Martinez has spotted a buy signal on Bitcoin’s 4-hour chart, citing a critical technical indicator.

Martinez shared his findings in a tweet today. According to Martinez, the TD Sequential indicator shows a buy signal on the 4-hour chart. Consequently, the analyst believes we can see the price return to the $23,200 to $23,500 price range.

However, the analyst cautions that if Bitcoin fails to hold the 100 EMA, it will invalidate this signal. In this scenario, Martinez says we could see a price drop to retest the 200 EMA.

For context, the TD Sequential is used to spot trend reversals.

“The TD Sequential presents a buy signal on BTC 4hr chart,” Martinez wrote in the tweet today. “If BTC can hold above the 100EMA, a spike in buying pressure could trigger a rebound to $23,200 – $23,500.”

“Beware that failing to hold above the 100EMA could lead to a steeper correction toward the 200EMA.”

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The analyst’s comment comes after we saw the asset’s price drop below $23,000 over the weekend. While it appears to have found support around the $22,824 price point, the structure still looks bearish, with resistance at $22,945. A significant close below current support could see the price drop to form a new lower low.

TradingView Screenshot 1675692928038
Bitcoin Price Chart

Martinez disclosed in a tweet yesterday that after Bitcoin dropped to $23,000, traders at Binance went long. Sharing the data, the analyst revealed that approximately 58.4% of accounts on Binance Futures are long.

As reported last week, veteran trader Peter Brandt disclosed that Bitcoin had formed a rare bottom chart pattern. Brandt asserted that the target for this chart pattern is the $25,500 price point, warning that if it does not reach the target quickly, it will risk a significant price drop.

At the time of writing, Bitcoin is yet to clinch this price point and is trading for $22,822, down 1.61% in the last 24 hours.

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Okoya David
Okoya David
Okoya David Kio is a crypto enthusiast passionate about understanding what makes the nascent market tick. When he's not pondering about cryptocurrencies, you might find him in a BP debate room trying to proffer solutions to age-old societal problems.

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