Renowned technical analyst in the crypto market, Ali Martinez, has observed a buy signal on the Bitcoin chart this Friday. The TD (TSX:TD) Sequential indicator, which traces a series of price points to signal possible trend reversals, presented this buy signal on the Bitcoin 3-day chart. Analyzing the signal, Ali noted that if Bitcoin sustains a close above $26,800, it could pave the way for a rally toward $28,000. However, a dip below $25,300 would nullify this bullish scenario.
Bitcoin gained 2.7% on Thursday, breaking out of a tight range and forming a bullish candle on the daily chart. This behavior is characteristic of a buy signal but requires sustained bullish behavior before confirming an upward trend. Ali identified $26,804 as significant resistance that Bitcoin broke through on Thursday. This resistance was established on August 23 when a notable rally was halted by a classic reversal candle on the daily chart. The reversal candle marked a bearish rejection and formed support at $25,346.
Ali's projections have been consistent with Bitcoin's recent price action and turning points established within the past few weeks. On August 29, Bitcoin attempted to recover from a two-week price crash and gained nearly 8%. The recovery halted at $28,142, with the price closing at $27,726 for the day. Since this last rejection, Bitcoin has remained bearish.
In addition to his analysis of Bitcoin, Ali also noted significant movements in other cryptocurrencies. He pointed out that roughly 5,000 BTCs worth around $128.5 million have been sent to crypto exchanges within the last 24 hours, which could indicate an increase in Bitcoin selling.
The crypto analyst also warned that Ethereum (ETH) may see a severe market correction if it fails to hold a key price level. Currently trading for $1,628, a drop below $1,680 could pave the way for a significant correction down to $1,200. Furthermore, he observed that crypto whales are selling off large amounts of Cardano (ADA), with approximately 1.02 billion ADA worth around $265 million being sold or redistributed over the past week.
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