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As the price of bitcoin hovers around the $ 64,000 mark, renowned crypto analyst Ali Martinez has drawn attention to a disturbing pattern on the charts. According to Martinez’s latest data on BTC $80,719.97 Bitcoin 2.64% Market capitalization $1.62 trillion VOL. 24 hours $1.34 billion , there are two significant sell signals that indicate potential pressure on the cryptocurrency.
The first negative signal is the appearance of a «death cross» between the 50 and 100 simple moving averages (SMAs) on the 12-hour chart of bitcoin. This ominous pattern occurs when a short-term moving average, in this case the 50-day SMA, crosses below a long-term moving average of 100 or 200 days. Historically, the death cross has been viewed as a bearish indicator, signaling a potential change in momentum from bullish to bearish.
The appearance of the red 9 candlestick on the TD Sequential indicator also increases the concern. Developed by market analyst Thomas DeMark, TD Sequential is a technical analysis tool used to identify potential price exhaustion and trend reversal.
In this context, a red 9 candlestick indicates that bitcoin’s upward momentum may be losing strength, potentially opening the way for a corrective move.
If BTC fails to stay above the critical support level of $ 63,300, investors may have to prepare for a further drop. Martinez warns that a breakout of this level could open the door for BTC to test lower support zones at $ 61,000 or even $ 59,000.