Crypto trader Ali Martinez is sounding the alarm, warning of a potential Bitcoin crash. He’s noticed a bearish signal on Bitcoin’s chart that previously signaled a major market downturn.
Bearish Divergence Spotted
Martinez, who boasts a large following on X (formerly Twitter), points to a “bearish divergence” on Bitcoin’s weekly chart. This means Bitcoin’s price is making higher highs and higher lows, but a key indicator, the Relative Strength Index (RSI), is showing the opposite – lower lows and lower highs. This discrepancy is a warning sign.
He notes that a similar divergence appeared in November 2021, just before Bitcoin plummeted from around $69,000 to roughly $15,500.
Lack of Support and Historical Comparisons
Martinez highlights a lack of significant support for Bitcoin below $93,198 and $70,440. He’s also comparing the current Bitcoin cycle to past cycles following Bitcoin halvings.
If the current cycle mirrors the 2011-2015 period, he believes Bitcoin might have already peaked at $108,800, suggesting further price drops are likely. However, if it follows the 2015-2018 cycle, there could be more upside potential before a top is reached.
Bitcoin’s Current Situation
At the time of writing, Bitcoin is trading around $85,822, down approximately 21% from its all-time high in January.
Disclaimer: This information is for general knowledge only and does not constitute financial advice. Always conduct your own research before making any investment decisions.
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