Ali Martinez believes we can see a rebound to $23,500.
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.”
#Bitcoin | The TD Sequential presents a buy signal on $BTC 4hr chart. 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. pic.twitter.com/Ao4NEkAa0b
— Ali (@ali_charts) February 6, 2023
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.
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 #Bitcoin dropped from $24,240 to $23,000, traders on #Binance increased their $BTC exposure.
Today, ~58.4% of all accounts on @BinanceFutures are going long #BTC while the other ~41.6% are going short. pic.twitter.com/IYkdZ8bmBA
— Ali (@ali_charts) February 5, 2023
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.