Cryptocurrency strategist Ali Martinez is issuing a warning on Bitcoin (BTC) after recognizing a bearish divergence on two key metrics.
In a brand new put up, Martinez tells his 32,700 followers on the X social media platform that the worth of Bitcoin is climbing whereas the expansion of the community is slowing down.
Based on Martinez, the divergence between Bitcoin’s community development and value is a “purple flag”.
“It suggests the uptrend may not have sufficient momentum to maintain.
This bearish divergence between BTC value and community development is an on-chain promote sign merchants ought to concentrate on.”
The cryptocurrency strategist says that the important thing ranges to look at if Bitcoin turns downwards are at $34,300 and $30,200 the place important demand for BTC exists.
Bitcoin is buying and selling at $36,173 at time of writing.
Turning to Ethereum (ETH), Martinez says that the second-largest crypto asset by market cap may flip bearish primarily based on the readings of the Tom Demark (TD) Sequential indicator on the 3-day chart. The TD Sequential is used to determine key inflection factors within the markets.
Based on Martinez, the important thing degree for Ethereum is within the $2,000 to $2,150 resistance zone because it types an ascending triangle sample on the 3-day chart. Ascending triangle patterns are usually thought-about bullish.
“A pullback from this resistance degree [$2,000 – $2,150 resistance zone] may result in a dip towards the [ascending] triangle’s hypotenuse at $1,700, setting the stage for a possible uptrend continuation.
Keep watch over the essential $2,150 degree – a sustained 3-day candlestick shut above this might negate the bearish outlook.”
Ethereum is buying and selling at $2,010 at time of writing.
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