Bitcoin is currently riding the bullish wave within the midst of growing market optimism, which has caused the most important crypto asset to achieve a recent all-time high. Nevertheless, a crypto analyst has warned that BTC’s price rally might not be favorable to late investors, suggesting a strategic approach from the brand new entrants with a purpose to cut losses during market pullbacks.
Late Bitcoin Investors Face Higher Risk
In an insightful post on the X (formerly Twitter) platform, Ali Martinez, a seasoned market expert and trader, cautioned late Bitcoin investors that volatility may occur within the foreseeable future because the digital asset draws closer to key barrier levels.
The expert advises that while the long-term outlook for BTC remains to be promising, investors should pay attention to short-term price swings and the difficulty of investing in an already established bull market. This simply implies that BTC’s recent upward momentum may very well be followed by sharp corrections within the upcoming days before surging once more to higher heights.
Ali Martinez made the cautionary post after citing a sell signal from the important thing Tom DeMark (TD) Sequential indicator on the 4-hour timeframe, suggesting an impending price correction, possibly to the $72,000 level.
While the market expert anticipates a pullback to the $72,000 mark, he’s confident that this bearish setup may be invalidated and a rally to the $78,000 level can be initiated with a persistent close above $75,400.
Martinez’s forecast is available in light of the recent surge in market optimism and growing confidence in the longer term of BTC, as observed by major market participants and enthusiasts in expectation of bullish runs to unprecedented levels.
It will be significant to notice that Martinez’s near-term outlook peak for Bitcoin is positioned on the $85,000 threshold. The crypto expert expects the run to the pivotal level to materialize once the digital asset reaches $78,000.
Nevertheless, the trail to the $85,000 goal may not be a smooth ride because the expert envisions a possible pullback to $71,500 after hitting $78,000 before initiating an upward movement to $85,000. “That is playing as predicted. I feel Bitcoin hits $78,000, retraces to $71,500, after which rebound to $85,000,” he stated.
Momentum Is Key For BTC’s Entry Into Uncharted Territory
As BTC approaches several resistance levels, crypto analyst Negentropic has identified that a strong momentum is crucial for the digital asset’s future growth. Negentropic highlighted that Bitcoin has been holding regular in a bullish zone for a couple of month after making a double bottom around $60,000 in October, which was followed by a well-recognized trend that led to previous all-time highs.
In keeping with the expert, maintaining this renewed momentum is important for its next rally. Thus, should this optimistic trend proceed, Negentropic believes that the event will further bolster BTC’s direction into uncharted territory, preparing it for even “higher peaks.”
Featured image from Unsplash, chart from Tradingview.com