Crypto trader issues Bitcoin warning, says BTC could crash as much as 47% from current levels – here’s why

Analyst and trader Ali Martinez is bearish on Bitcoin (BTC) as the flagship cryptocurrency is around 20% below its all-time high.

Martinez tells his 71,000 followers on social media platform X that Bitcoin has fallen below a key moving average, a development that could cause the largest crypto asset by market cap to fall around 47% from its current price to levels last seen in October 2023.

“Bitcoin trading above its 200-day moving average often signals strong returns, while a drop below it can lead to sharp corrections.

BTC has been below this key $64,000 mark for over a month now, suggesting a potential drop to the realized price of $31,500!”

Martinez further says that exchange volume dynamics also sends a bearish signal for Bitcoin. Exchange volume dynamics compares the monthly average of BTC's exchange inflows and outflows to its annual average, with a decrease indicating lower investor interest and an increase indicating increasing investor interest.

Martinez says:

“Bitcoin exchange volume momentum shows a decline in on-chain activity associated with exchanges, indicating lower investor interest in BTC.”

The crypto trader and analyst also says that the Tom DeMark (TD) Sequential indicator on the 12-hour time frame has shown a sell signal for Bitcoin in anticipation of a “short correction.” The TD Sequential indicator is used in technical analysis to determine potential bullish or bearish reversal points.

At the time of writing, Bitcoin is trading at $60,442, up over 4% on the day.

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Disclaimer: The opinions expressed on The Daily Hodl do not constitute investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please note that your transfers and transactions are at your own risk and you are responsible for any losses you may incur. The Daily Hodl does not recommend buying or selling cryptocurrencies or digital assets, nor is it an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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