Bitcoin has been on a tear lately, climbing back up after a rough couple of weeks in September. The Fed’s decision to cut interest rates gave crypto a boost, and Bitcoin surged past $63,000.
A Warning From an Analyst
One analyst, Ali Martinez, who uses a technical tool called the TD Sequential, predicted this rally. But now, he’s saying it might be time to take some profits.
Martinez noticed that the TD Sequential, which signaled a buy at $57,400, is now flashing a warning sign at around $63,700. This suggests that Bitcoin could be nearing a peak and might be due for a correction.
Bitcoin’s Price Action: A Closer Look
Bitcoin has been struggling to break through the $63,000 level, which acted as a resistance point earlier this year.
While Martinez is suggesting a potential correction, other analysts are still bullish. Bitcoin is currently testing the 200-day moving average (SMA), a key level for confirming a bull run. Historically, failing to break above the 200-day SMA has led to significant price drops.
Looking Ahead: Bullish or Bearish?
There are some factors that could prevent a major correction. Spot Bitcoin ETFs are gaining traction, which could boost the market. A strong close for September could also lead to a positive October.
However, the $63,000 level and the 200-day SMA at $63,900 are important to watch. These levels could determine whether Bitcoin continues its rally or heads for a correction.
