A popular cryptocurrency trading expert has identified a key Bitcoin ($BTC) price level to watch after noting that a technical indicator flashed a buy signal that could take Bitcoin’s price above the $24,000 mark.
Shortly after the expert, Ali Martinez, pointed out that the TD Sequential indicator was presenting a buy signal that could take BTC above the $24,000 mark, the flagship cryptocurrency surged to at the time of writing trade at $24,500.
Martinez noted, however, that the support level at $23,890 should be paid attention to, as a “four-hour candlestick close below it can trigger a steep correction.”
#Bitcoin | The TD Sequential indicator presents a buy signal at a key support area. A spike in buying pressure could help $BTC toward $23,500 or even $24,100.
Still, watch out for the $23,890 support level as a four-hour candlestick close below it can trigger a steep correction. pic.twitter.com/rmDsRTT6Jp
— Ali Martinez (@ali_charts) August 10, 2022
In a follow-up tweet, Martinez pointed out that the flagship cryptocurrency has “tested the $23,850 resistance eight times in the past month” and has closed the day above this level for the first time in a while.
The analyst added that BTC’s Relative Strength Index (RSI) is moving past the 60 level as it “appears that BTC is breaking out.” The RSI is a momentum indicator used to measure the speed and magnitude of an asset’s price changes to evaluate whether it may be overvalued or undervalued.
Per Martinez, it’s still unclear what will happen to BTC around the $24,700 mark.
#Bitcoin tested the $23,850 resistance eight times in the past month and just printed the first daily close above this level. With the RSI also moving past the 60 level, it appears that $BTC is breaking out.
Still, we have yet to see how #BTC reacts around $24,700. pic.twitter.com/77DBHpwYOY
— Ali Martinez (@ali_charts) August 11, 2022
The analyst also added that Bitcoin built a “stiff support floor between $23,055 and $23,800, where 1.52 million addresses purchased nearly 910,000 BTC.” Per his words, the cryptocurrency faces “little to no resistance ahead.”
As CryptoGlobe reported intuitional investors and other large traders remain bullish on the flagship cryptocurrency Bitcoin and see it rally to $32,000 this year, despite the crypto market downturn that has been enduring in the first half of the year.
Cumberland, a Chicago-based market maker that buys and sells with institutions and other firms that make large transactions, has recently conducted a survey with its clients and found that the median respondent did not believe the pain is fully over in the cryptocurrency space, predicting BTC will drop to a $16,000 low this year, although they also expect a rally to $32,000.