The Bitcoin price has remained relatively stable over the weekend, hovering around the $68,000 mark. Despite a quieter performance in the past 24 hours, the leading cryptocurrency has managed to maintain its position above this crucial level.
Nonetheless, a well-known crypto analyst on social media platform X has raised doubts about Bitcoin’s ability to sustain this level for much longer. This speculation has left many investors pondering whether this potential correction is merely a temporary setback or indicative of a more significant shift in the latest bullish resurgence of the cryptocurrency.
Crypto analyst Ali Martinez recently shared an intriguing forecast for Bitcoin’s price, suggesting that it might be poised for a short-term correction. Martinez pointed out that the “Tom Demark” (TD) Sequential, a technical analysis indicator, has issued a sell signal for Bitcoin on the daily chart.
The TD Sequential is utilized in technical analysis to pinpoint possible trend exhaustion and price reversal points. This tool consists of two primary phases: the TD Setup phase and the TD Countdown phase.
The Setup phase comprises nine candles of the same polarity, either bearish or bullish. In a bullish Setup phase, the indicator begins with a number “1” on a candle that closes higher than the candle four periods prior. Conversely, a bearish Setup phase starts with a number “1” on a candle that closes lower than the one four periods back. Reversal points can be identified when the TD Sequential marks a figure on the top or bottom of a candle within a bullish or bearish trend.
As depicted in Martinez’s chart, the number “9” recently appeared atop a candlestick on Bitcoin’s daily chart, signifying the end of the Setup phase. Given Bitcoin’s initial bullish trend, this indicator suggests a brief correction is imminent.
In the past few days, there has been vigorous debate about the potential for Bitcoin to revisit and possibly exceed its all-time high. However, Martinez cautioned investors to brace for a short-term pullback before expecting higher highs.
At the moment, Bitcoin is priced around $68,272, marking a modest 0.5% decline over the past day. Despite this, CoinGecko data reveals that the premier cryptocurrency has surged nearly 9% over the past week.