Crypto trader Ali Martinez is warning that Bitcoin (BTC) will likely soon undergo a short-lived market correction.
Martinez tells his 32,300 followers on the social media platform X that he expects Bitcoin to pull back after nearing $38,000.
“Actually, a brief correction is brewing.”
The trader uses the Tom DeMark (TD) Sequential indicator to predict that Bitcoin could decline by nearly 12% from its current value.
“Bitcoin is nearing $40,000, and the crowd couldn’t be more excited. But one important rule in trading is that you cannot follow the herd. Although I’m not touching my spot BTC position until some time in 2025, I’m inclined to enter a short in the futures market.
Want to know why?
Well, the TD Sequential presents a sell signal on the weekly chart as BTC approaches an important area of resistance between $38,500 and $42,000. I believe this resistance wall could trigger a correction toward $33,000, where I plan to buy the dip before the uptrend resumes. Invalidation would be a weekly candlestick close above $42,500.”
The Tom DeMark (TD) Sequential indicator traces a series of price points to signal possible trend reversals. Based on TD Sequential principles, a 13 count indicates a pause in the current trend, a pullback, or a reversal. A point of reversal is indicated when nine consecutive candles close lower than the candles of four periods earlier.
The trader also notices that Bitcoin miners are selling huge amounts of BTC, which can create downside pressure on the king crypto.
“Since Bitcoin surged past $34,000 in late October, BTC miners have been selling. Over 5,000 BTC, worth approximately $175 million, have been offloaded since then.”
Bitcoin is trading for $37,377 at time of writing.
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Source: https://dailyhodl.com/2023/11/10/crypto-trader-issues-warning-on-bitcoin-says-a-brief-correction-is-brewing-here-are-his-targets/