Bitcoin is currently riding the bullish wave in the midst of growing market optimism, which has caused the largest crypto asset to reach a new all-time high. However, a crypto analyst has warned that BTC’s price rally may not be favorable to late investors, suggesting a strategic approach from the new entrants in order to cut losses during market pullbacks.
Late Bitcoin Investors Face Higher Risk
In an insightful post on the X (formerly Twitter) platform, Ali Martinez, a seasoned market expert and trader, cautioned late Bitcoin investors that volatility may occur in the foreseeable future as the digital asset draws closer to key barrier levels.
The expert advises that while the long-term outlook for BTC is still promising, investors should be aware of short-term price swings and the difficulty of investing in an already established bull market. This simply implies that BTC’s recent upward momentum could be followed by sharp corrections in the upcoming days before surging once again to higher heights.
Ali Martinez made the cautionary post after citing a sell signal from the key Tom DeMark (TD) Sequential indicator on the 4-hour time frame, suggesting an impending price correction, possibly to the $72,000 level.
While the market expert anticipates a pullback to the $72,000 mark, he is confident that this bearish setup might be invalidated and a rally to the $78,000 level would be initiated with a persistent close above $75,400.
Martinez’s forecast comes in light of the recent surge in market optimism and growing confidence in the future of BTC, as observed by major market participants and enthusiasts in expectation of bullish runs to unprecedented levels.
It is important to note that Martinez’s near-term outlook peak for Bitcoin is positioned at the $85,000 threshold. The crypto expert expects the run to the pivotal level to materialize once the digital asset reaches $78,000.
However, the path to the $85,000 target might not be a smooth ride as the expert envisions a possible pullback to $71,500 after hitting $78,000 before initiating an upward movement to $85,000. “This is playing as predicted. I think Bitcoin hits $78,000, retraces to $71,500, and then rebound to $85,000,” he stated.
Momentum Is Key For BTC’s Entry Into Uncharted Territory
As BTC approaches several resistance levels, crypto analyst Negentropic has pointed out that a robust momentum is crucial for the digital asset’s future growth. Negentropic highlighted that Bitcoin has been holding steady in a bullish zone for about a month after creating a double bottom around $60,000 in October, which was followed by a familiar trend that led to previous all-time highs.
According to the expert, maintaining this renewed momentum is essential for its next rally. Thus, should this optimistic trend continue, Negentropic believes that the development will further bolster BTC’s direction into uncharted territory, preparing it for even “higher peaks.”
Featured image from Unsplash, chart from Tradingview.com
Source: https://bitcoinist.com/latecomers-to-bitcoin-rally-get-cautionary-advice/