Influential cryptocurrency analyst and trader Ali Martinez said on Monday that Bitcoin (CRYPTO: BTC) is nearing a bottom, marking the start of a major accumulation cycle.
Selling Pressure To Increase?
In an X thread, Martinez weighed in on the next possible moves of the apex cryptocurrency.
The analyst noted that Bitcoin’s latest crash to $59,000 has effectively flushed out overleveraged premiums across the board, with long-term holders selling over $3 billion in spot BTC.
Martinez said the distributed supply has temporarily pushed up exchange reserves, which is likely to increase short-term selling pressure.
BTC Levels To Watch Out For
Martinez further highlighted that after Bitcoin’s drop to $59,000, more than 10.46 million BTC is currently held at a loss.
“Historically, every time the supply-in-loss metric crosses this extreme 10 million threshold, it has accurately timed macro bottoms,” they projected.
Martinez also drew attention to the significance of Market Value to Realized Value bands, identifying $53,900 and $43,150 as key historical zones where “premier accumulation windows” have formed.
These pricing bands use statistical deviation from the Market Value to Realized Value ratio’s all-time average to identify potential market tops and bottoms.
Martinez highlighted the levels he’s tracking ahead of the next bull market, notably the 200-week simple moving average at $62,800, the 300-week simple moving average at $55,000 and the 400-week simple moving average at $42,500.
What Other Analysts Are Saying
Martinez’s findings echoed those of fellow cryptocurrency analyst Benjamin Cowen, who posited that investor psychology is now approaching the point historically associated with major bottoms.
Cowen’s framework estimated the current phase could last through the third quarter and potentially into October.
Veteran Wall Street investor Jordi Visser said earlier this week that the market has entered a rotation phase that’ll likely last for at least the next 3 to 6 months.
He brushed off the idea that Bitcoin is a bubble ready to pop, adding that even a significant drop below $60,000 would not be cause for alarm.
Price Action: At the time of writing, BTC was exchanging hands at $63,153.96, up 0.14% in the last 24 hours, according to data from Benzinga Pro.
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