Bitcoin On-chain data has caught the attention of technical analyst Ali Martinez by showing that 1.72 million BTC has recently moved in the $29,500 to $30,200 price range. This move marks an important area of resistance for the leading cryptocurrency.
#Bitcoin | On-chain data shows that 1.72 million $BTC last moved within the $29,500 – $30,200 price bucket, representing a significant area of resisitance.
Wait until it becomes support and expect fireworks when it does! pic.twitter.com/vhlKVh3wsg
— Ali (@ali_charts) July 23, 2023
Martinez Points Breakouts In Bitcoin And Dogecoin
However, Martinez advises investors to wait for this resistance area to turn into support, as this could potentially trigger significant market moves. Once Bitcoin identifies this range as support, he predicts it could be bullish in terms of price action.
In terms of technical indicators, the TD Sequential on the BTC daily chart gives a buy signal, which is seen as a positive sign for the digital asset.
Martinez believes that if Bitcoin successfully closes above $30,000 on a daily basis, it could pave the way for a rise to the $30,400 – $30,600 range and confirm a bullish formation.
#Bitcoin | The TD Sequential shows a buy signal on $BTC daily chart. A daily close above $30K could validate the bullish formation leading to an upswing to $30.4K – $30.6K.
Watch out for the $29.5K level, as any signs of weakness at this support could invalidate the buy signal. pic.twitter.com/eOBiiYxPoJ
— Ali (@ali_charts) July 23, 2023
While this analysis shows bullish possibilities, Martinez also warns investors to watch out for the $29,500 level. Any signs of weakness or failure to maintain this support level could invalidate the buy signal and change the outlook for Bitcoin.
At Dogecoin, Martinez points out an intriguing historical pattern. DOGE notes that when the most recent descending triangle formation developed on its monthly chart, the meme-inspired cryptocurrency experienced a staggering 23,200% rise.
#Dogecoin | The last time a descending triangle developed on the monthly chart $DOGE pumped 23,200%! 👀
I'll be looking at a sustained monthly close above $0.80 for confirmation. pic.twitter.com/RVgymwIhtK
— Ali (@ali_charts) July 23, 2023
According to Martinez, an important milestone to watch out for for Dogecoin is a sustained close above $0.80 per month. If this level is reached, confirmation for more positive price action can be obtained.
As always, traders are encouraged to be cautious and do their own research before making any decision based on technical analysis.
Market conditions can change rapidly and it is very important to stay up to date with the latest developments in order to make informed investment choices.
*Not investment advice.
