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.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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