Crypto analyst Ali Martinez stated that a macro-level bottom may have formed in the Bitcoin price, noting that three long-term technical indicators are signaling in the same direction.
Martinez said that a buy signal from the TD Sequential has formed on Bitcoin's monthly chart. According to the analyst, this rare signal successfully indicated the market bottom in 2022. Martinez suggested that the current signal may similarly be pointing to a new cyclical bottoming zone.
The second factor highlighted by the analyst was Bitcoin's proximity to its 50-month Simple Moving Average (SMA). Martinez noted that this long-term support level has intersected with Bitcoin's price at numerous significant market lows since 2014. Therefore, he argued that the current level could be a historically strong support zone.
The third highlighted indicator was data from the Chande Momentum Oscillator (CMO). According to Martinez, the CMO indicator has fallen to -71. It was noted that the indicator last reached these levels in June, when the Bitcoin price dropped to around $57,000.
The Chande Momentum Oscillator measures the relative strength of upward and downward price momentum over a specified period. The indicator is used to assess whether the market is in an overbought or oversold zone, as well as to gauge the strength of the current trend. Historically, relatively low CMO levels have sometimes coincided with significant Bitcoin lows.
Martinez stated that when these three long-term indicators are considered together, the technical outlook for a possible macroeconomic base formation for Bitcoin is strengthened. However, these indicators are based on past price movements and do not, by themselves, guarantee future price performance.
*This is not investment advice.
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