On the last working day of this week, Bitcoin prices continued to strive to stabilize above $28000. Despite a good start to the week and early October, the cryptocurrency market was unable to maintain an upward trend due to the lack of significant growth in trading volume
On the last working day of this week, Bitcoin prices continued to strive to stabilize above $28000. Despite a good start to the week and early October, the cryptocurrency market was unable to maintain an upward trend due to the lack of significant growth in trading volume. Since May, investor interest has decreased, resulting in BTC prices remaining within a narrow range.
The predictions of cryptocurrency analysts have received much attention, and one well-known analyst, Ali Martinez, recently shared his latest views on the market. The analyst pointed out that Bitcoin is forming a typical bear flag shape, which may lead to greater losses.
The bear flag pattern is widely considered a bearish signal in technical analysis, as it usually indicates the continuation of a downward trend. This pattern occurs when prices experience a strong downward trend and attempt to rise but find it difficult to break through important support levels.
He said, "Bitcoin is currently showing a typical bear flag pattern, which usually indicates that the downward trend of Bitcoin may continue. Is there still hope? I would suggest adopting a strict stop loss strategy of 0.86% and considering profit taking when approaching a potential profit level of 5%
According to analysts' chart, BTC's price may drop to $26751 as it has failed to regain support at $28034. Different experts have previously stated that if the closing price falls below $27500, it may trigger selling pressure, causing the price to decline to $26800.
Today, we will witness the release of crucial macro data. The employment and wage growth data may have an impact on the decisions of the Federal Reserve at its meeting on November 1st and trigger fluctuations in the cryptocurrency market. If employment data shows a strong growth trend and wage increases are higher than expected, October may become the first bearish period in many years.
This cryptocurrency expert pointed out that RSI data also confirms the possibility of a decline.
He said, "If you observe the four hour chart of BTC, you can see that the RSI has reached or exceeded 74.21. Historical data shows that whenever this situation occurs, BTC usually experiences a round of decline. Recently, the RSI on the four hour chart has soared to 82.83
Martinez also evaluated Ethereum;
In the Ethereum market cycle, when the MVRV (blue line) strongly exceeds the MVRV (red line) of the 180 day SMA, the market usually switches from a downward trend to an upward trend. Currently, Ethereum is in the allocation stage and is accumulating potential inflows
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