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Analyst warns late Bitcoin investors of market risks

Analyst warns late Bitcoin investors of market risks

Grafa2024/11/08 04:00
By: Mahathir Bayena
BTC-0.92%XOLDTOKEN0.00%

Bitcoin (CRYPTO:BTC) has recently reached new all-time highs amid a wave of market optimism, sparking interest from investors.

However, seasoned market expert Ali Martinez has cautioned late investors to prepare for potential volatility as Bitcoin nears significant resistance levels.

According to a recent post on X (formerly Twitter), Martinez highlighted that while Bitcoin's long-term outlook remains promising, late entrants should remain cautious due to the inherent risks of investing in a mature bull market.

He pointed out that the current bullish momentum could be interrupted by sharp market corrections before Bitcoin resumes its upward trajectory.

Martinez referenced the Tom DeMark (TD) Sequential indicator on the 4-hour chart, which has flashed a sell signal, suggesting a possible pullback to the $72,000 level.

Despite the potential dip, he noted that the bearish setup could be invalidated if Bitcoin closes persistently above $75,400, potentially paving the way for a rally to $78,000.

Further, Martinez outlined a scenario where Bitcoin might climb to $78,000, followed by a retracement to $71,500 before ultimately rebounding to reach $85,000.

“This is playing as predicted. I think Bitcoin hits $78,000, retraces to $71,500, and then rebound to $85,000,” he said.

Momentum is also a critical factor as Bitcoin approaches key resistance zones.

Another crypto analyst, Negentropic, emphasised the importance of sustained momentum for Bitcoin’s continued growth.

He noted that Bitcoin has been in a strong bullish zone for about a month, having formed a double bottom around $60,000 in October.

This trend is similar to those that have preceded past record highs.

If Bitcoin maintains this positive momentum, it could push further into uncharted territory, potentially reaching even higher levels.

Market participants remain watchful as the asset navigates key price points in its ongoing rally.

At the time of reporting, the Bitcoin price was $75,876.07.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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