Crypto analyst and trader Ali Martinez believes Bitcoin (BTC) is gearing up for a rally as one indicator is suddenly flashing green.
Martinez tells his 42,400 followers on the social media platform X that the Tom DeMark (TD) Sequential indicator is giving off a bullish reading.
However, the analyst warns if Bitcoin fails to hold the key 100-day simple moving average (SMA) level at about $36,500, Bitcoin may correct to $33,300 based on Fibonacci retracement levels.
“The TD Sequential flashed a buy signal on the daily chart while Bitcoin maintains its position above the 100-day SMA. An upward move past $40,550 may catalyze an upswing to $43,000.
However, monitor the 100-day SMA support level because a breach might lead BTC to $33,300.”
The TD Sequential indicator aims to identify market turning points with a value of nine signaling a possible trend reversal.
Bitcoin is trading for $41,831 at time of writing, up more than 5% in the last 24 hours.
The analyst also notices Bitcoin network activity is suddenly increasing, which is another bullish indicator.
“The Bitcoin network has recorded a remarkable surge in active BTC addresses, surpassing one million! This spike signals growing participation and usage of BTC.”
Another bullish signal is that crypto whales continued to purchase more BTC during the latest market correction, according to the analyst.
“Even amidst this market correction, Bitcoin whales are not slowing down – they’re accumulating more BTC! In fact, there’s been a notable increase in major players: 46 new entities now hold 1,000 BTC or more, marking a 3% increase in just two weeks.”
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