A leading analyst has issued a warning to crypto traders, urging caution as Bitcoin (BTC) whales engage in significant profit-taking.
Whale Sell-Off
According to data from Santiment, BTC whales have sold off over 80,000 BTC in the past three days, amounting to approximately $4.8 billion. Analyst Ali Martinez highlights this as a potential red flag for investors and traders.
Technical Indicator Signals Sell
Martinez also points to the Tom DeMark (TD) sequential indicator on Bitcoin’s four-hour chart, which has flashed a sell signal. This indicator has been accurate in identifying price reversals in the past, leading to corrections between 1.50% and 4.20%.
Price Drop Confirmed
On Thursday, the indicator proved accurate once again, with Bitcoin dropping from a high of $63,400 to a daily low of $60,585. However, it has since recovered to $61,235 at the time of writing.
Market Outlook
Despite the recent sell-off, Bitcoin remains up nearly 19% in the past seven days and over 38% since the beginning of the year. However, traders are advised to proceed with caution given the potential for further price fluctuations.
