Crypto analyst and trader Ali Martinez believes Bitcoin (BTC) is gearing up for a rally as one indicator suddenly flashes green.
Martinez tells his 42,400 followers on the social media platform
However, the analyst warns that if Bitcoin fails to hold the key 100-day simple moving average (SMA) level at around $36,500, Bitcoin could correct to $33,300 based on the Fibonacci retracement levels.
“The TD Sequential gave a buy signal on the daily chart, while Bitcoin maintains its position above the 100-day SMA. An upward move past USD 40,550 could catalyze a rise towards USD 43,000.
However, keep an eye on the 100-day SMA support level as a breach could send BTC to $33,300.”
The TD Sequential indicator is intended to identify turning points in the market, with a value of nine indicating a possible trend reversal.
Bitcoin is trading at $41,831 at the time of writing, up more than 5% in the past 24 hours.
The analyst too notices Bitcoin network activity is suddenly increasing, which is another bullish indicator.
“The Bitcoin network has recorded a remarkable increase in the number of active BTC addresses, reaching over a million! This peak indicates growing participation and use of BTC.”
Another bullish signal is that crypto whales continued to buy more BTC during the last market correction, the analyst said.
“Even amid this market correction, Bitcoin whales aren’t slowing down – they’re accumulating more BTC! There has even been a notable increase in the number of major players: 46 new entities now own 1,000 BTC or more, representing a 3% increase in just two weeks.”
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