One closely followed cryptocurrency analyst issued a warning, saying that Bitcoin (BTC) has just issued a signal indicating that a sell-off event may be imminent.
Cryptocurrency strategist Ali Martinez warns that the Tom DeMark (TD) Bitcoin Sequential Index indicates a potential corrective move.
The TD Sequential indicator tracks a series of price points to indicate potential trend reversals.
Martinez says,
“Bitcoin: TD Sequential Indicator Shows Sell Signals on Weekly and Three-Day Charts for BTC! Remember, the last time TD showed buy signals on both time frames was in early September, kicking off the recent uptrend.”
Looking at the activities of Bitcoin miners, Martinez says the investor group has been using the recent rally to offload thousands of Bitcoins.
“Since Bitcoin surged above $34,000 in late October, Bitcoin miners have been selling.
More than 5,000 bitcoins, worth about $175 million, have been offloaded since then.
At the time of writing, Bitcoin is trading at $37,026.
As for Ethereum (ETH), Martinez notes that the currency’s recent rally began without inflows from deep-pocketed investors.
“Ethereum has reclaimed the $2,000 threshold, and interestingly, all of this is happening before the whales start buying.”
At the time of writing, Ethereum is trading at $2,042.
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