A closely followed crypto analyst says that Bitcoin (BTC) is gearing up to bounce back based on one key indicator.
In a new strategy session, crypto trader Ali Martinez tells his 66,600 on the social media platform X that the Tom DeMark (TD) Sequential indicator is flashing a buy signal on the crypto king’s one-hour chart.
“The TD presents a buy signal on the Bitcoin one-hour chart, anticipating a rebound of one to four hourly candlesticks for BTC!”
The TD Sequential indicator is generally used by traders to determine potential points of reversal for an asset.
Martinez says that historically, the top crypto asset by market cap has recuperated in July after having a rough month of June.
“Historically, when Bitcoin has had a negative June, it tends to bounce back strongly in July. In fact, BTC has shown an average return of 7.98% and a median return of 9.60% during this month.”
However, the analyst says that based on current futures positions, it’s possible that Bitcoin’s dip isn’t over yet.
“Bitcoin price action has been brutal, but only $280.9 million in longs have been liquidated and $25.4 in shorts. In the past, we have seen mass liquidation events of over $1 billion! This tells us either the BTC dip is not over yet or shorts are about to get obliterated.”
Bitcoin is trading for $57,534 at time of writing, a 4.8% decrease during the last 24 hours. On July 1st, it was trading for $63,322.
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inboxFeatured Image: Shutterstock/arleksey/Sol Invictus