A closely followed crypto analyst says Bitcoin (BTC) is giving off a reading that previously signaled the start of a nearly 3X surge.
Crypto strategist Ali Martinez tells his 67,100 followers on the social media platform X that Bitcoin owners who bought their coins within the last one to three months witnessed significant losses after the top digital asset slumped below $55,000 earlier this month.
Martinez notes that the last time Bitcoin traders saw similar losses was in September of 2023, just before BTC ignited a parabolic rally.
“The last two times Bitcoin traders’ realized losses dropped below -12%, BTC soared 104% and 193%, respectively.
Now, realized losses are below -12% again!”
A realized loss is when a trader sells an asset at a value lower than the purchase price.
With Bitcoin now trading above $60,000, Ali Martinez says BTC has successfully broken out of an ascending triangle formation but may a see brief pullback to flip the pattern’s resistance into support before heading higher.
“If you’re getting in late, watch out! Bitcoin could retest the breakout zone at $59,200 before reaching the $63,800 target.”
The analyst also notes that there’s fuel for Bitcoin to go higher as billions of dollars worth of short positions are waiting to be liquidated if BTC soars above $72,000.
“$5.60 billion in short positions will be liquidated if Bitcoin makes a U-turn to $72,300!”
At time of writing, Bitcoin is trading for $62,982, up over 4% on the day.
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