Bitcoin (BTC) surged to a three-month high on Sunday, with investor expectations for a substantial rally being ignited during Asia's trading session. This recent climb saw BTC rise by 2.6% in the last 24 hours to $30,622. The current bullish trend is largely driven by speculation surrounding the approval of a spot Bitcoin ETF by the end of the year.
However, crypto analyst Ali Martinez has issued a cautionary note about an imminent trend reversal. In his analysis on Saturday, he suggested that unless BTC can secure a daily close above $31,560, it risks facing an impending price correction.
Two primary indicators support Martinez's caution: a head and shoulders pattern and the relative strength index (RSI) at 74.21. This specific RSI level has historically triggered sharp price corrections since March, and BTC has hit this mark again after its recent surge.
The TD Sequential indicator also raises alarms for a potential sell signal. In the event of a correction, Martinez predicts BTC could drop to a low of $28,630. Investors are advised to closely monitor these indicators and market developments in the coming days.
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