Cryptocurrency trader and analyst Ali Martinez says Bitcoin (BTC) is flashing a signal that preceded a market downturn during the last cycle.
Martinez tells his 152,800 followers on the social media platform X that a bearish divergence pattern has appeared on Bitcoin’s weekly time frame.
-->A bearish divergence occurs when the price of an asset is making higher highs while an indicator such as the Relative Strength Index (RSI) is making lower lows.
According to Martinez, Bitcoin printed a bearish divergence in 2021 in the run-up to BTC reaching the then-record high of around $69,000, before a downtrend that saw the price bottom out at about $15,500 in November of 2022.
Source: Ali Martinez/XThe widely followed analyst and trader further says that the Market Value to Realized Value (MVRV) Momentum indicator, which compares the market cap of an asset to its realized cap to analyze the long-term trend, recently printed a death cross signal.
An MVRV Momentum death cross indicator, which signals a bearish reversal, occurs when the indicator’s short-term moving average crosses below its long-term moving average.
Source: Ali Martinez/XMartinez also outlines the key support levels for Bitcoin based on the Unspent Transaction Output (UTXO) Realized Price Distribution, an indicator that shows the specific prices at which the current BTC supply last moved.
“Key Bitcoin supports: $104,520, $97,050, and $59,720.”
Source: Ali Martinez/XBitcoin is trading at $109,432 at time of writing, down by about 11 from the all-time high reached earlier this month.
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