Cryptocurrency analyst and trader Ali Martinez says that one indicator is signaling a bearish outlook for Bitcoin (BTC).
Martinez tells his 153,900 followers on X that the Chande Momentum Oscillator (CMO), an indicator used in technical analysis to measure the strength of a trend, dipped last month to a level that is typically associated with a bear market.
“Bitcoin CMO above 20 has signaled bull markets, and below 20 has marked bear markets.
August’s close just pushed it back below 20.”
Bitcoin is trading at $110,911 at time of writing.
The analyst further says that the market value to realized value (MVRV) pricing bands of Bitcoin, which are used to identify potential resistance and support levels, are signaling that the crypto king could drop drastically if it fails to climb above a key price area.
“MVRV Pricing Bands show that as long as Bitcoin BTC stays below $114,250, key support sits at $92,600.”
Next up is Cardano (ADA). Martinez says the 11th-largest crypto asset by market cap is forming a falling wedge pattern, a pattern that can signal a potential reversal of a downtrend in technical analysis. According to Martinez, Cardano could go up by a little over 10% from the current level and hit a price of $0.94.
Cardano is trading at $0.83 at time of writing.
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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