Bitcoin Price Chart Gives Sell Signal, Analyst Warns It Drops Below $65,500
Recent market analysis regarding the price trend of the leading cryptocurrency, Bitcoin (BTC), reveals mixed feelings. Ali Martinez, a popular crypto analyst, sounded a cautionary note when he observed a sell signal on the Bitcoin price chart. Moreover, it pointed to a potential decline for BTC.
Will Bitcoin Drop Below $65,500?
In a recent post on X, Martinez highlighted the emergence of a sell signal on the 12-hour chart thanks to the TD Sequential indicator. He also underlined the importance of caution, particularly Bitcoin’s ability to sustain support above the $65,500 level. This means that if BTC falls below this threshold, a major crash could occur.
Contrary to Martinez’s cautious stance, another veteran analyst, Willy Woo, offered a more optimistic perspective on the Bitcoin price trend. Woo noted a notable turning point in Bitcoin’s monetary inflation rate, which has now fallen below gold. Additionally, the analyst speculated on the potential for Bitcoin’s market cap to surpass that of gold, consistent with the stock-to-flow thesis.
However, Woo softened his bullish outlook by acknowledging the inherent lag in Bitcoin’s adoption curve. The analyst noted that factors such as custody infrastructure, regulatory clarity and institutional acceptance are important determinants of Bitcoin’s long-term valuation.
In addition to the dynamic narrative surrounding Bitcoin’s price action, the recent resurgence of ETF inflows has caught the attention of market watchers. Following the April 19 Halving event, which effectively reduced the daily issuance of new Bitcoins to 450 BTC.
Bitcoin ETFs have emerged as notable buyers in the market as they collect more Bitcoin than daily mining output. This trend culminated in three consecutive days where ETFs purchased more than 100% of the total BTC mined post-Halving. In addition, the net purchase of Bitcoin ETFs remained at 2,177 BTC since last Friday, further accelerating the supply shock in the market.
Excluding outflows from Grayscale Bitcoin Trust (GBTC), the amount of the purchase reached a staggering 4,468 BTC. This influx of institutional demand has the potential to catalyze a price increase for Bitcoin in the near future. Thus, the upcoming price drop can be mitigated.
Also Read: Tesla Didn’t Sell Any of Its $711 Million Bitcoin (BTC) in Q1
Bitcoin Price Couldn’t Withstand $67,000
Bitcoin price recently rose above $67,000 but failed to maintain the momentum. At the time of writing, BTC price was up 0.63% and traded at $66,484.01 on Wednesday, April 24, with a massive market cap of $1.31 trillion. However, 24-hour trading volume decreased by 4.21% to $23.85 billion.
Amid the recent recovery, the short dominated the liquidation market with $11.46 million in the last 24 hours. However, the long positions also caused a massive liquidation of $8.81 million, according to Coinglass. Therefore, there is a horizontal movement due to the conflict between long and short position holders.
Also Read: 4 Best Cryptocurrencies to Buy After Bitcoin Halving
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