Markets
Analyst says not to be too excited about market recovery
Ali Martinez, Crypto Analyst has warned the crypto community not to get too excited about the recent market rally triggered by the filing of Solana Spot ETFs. Bitcoin (BTC) and the broader crypto market have seen a relief bounce after recent bullish developmentsbut the analyst pointed out what could send the market into a downtrend again.
Why the crypto community shouldn’t get “too excited” after the Solana ETF rally
Martinez mentioned in an X (formerly Twitter) job that the crypto community should not get too excited because $22 million will be liquidated of the crypto market if Bitcoin falls to $60,700. A significant amount of liquidations could lead to further decline in the crypto market, especially with other traders and investors looking to close their positions out of fear of being liquidated.
Martinez issued this warning following the market rebound caused by Bitcoin and altcoins. This rebound follows the announcement that asset manager VanEck had filed for ETF Spot Solana with the United States Securities and Exchange Commission (SEC). Solana, in particular, saw a price surge of over 8% and reached as high as $150 following the news.
The crypto market was also supported in anticipation of the US presidential debate. The crypto community expected crypto to be a major talking point during the discussion, even though that didn’t happen. Regardless, there are still enough reasons for the crypto market to be excited, as VanEck’s filing of the first-ever Solana Spot ETF marks a major milestone not only for the Solana ecosystem but for the crypto ecosystem in general.
Other asset managers can be expected to file for Spot Solana ETFs in due course, and the potential approval of these funds could pave the way for more crypto ETFs, just like the Approval of a Spot Bitcoin and Ethereum ETF motivated VanEck to file. ETF Spot Solana. Meanwhile, the Ethereum ETF under the microscope are expected to begin trading soon, giving more bullish momentum to the crypto market.
Technical indicators also point to further rises in Bitcoin
Martinez recently highlighted an Adam and Eve bottom pattern, which he said appears to be forming on Bitcoin’s chart. He said this signals a potential increase of 6% towards $66,000 if Bitcoin can sustain a candlestick close above $62,000. Additionally, Martinez recently noted that the Cryptocurrency Market Sentiment has turned into fear, suggesting that cryptocurrency prices are currently undervalued and a market rebound is imminent.
According to MartinezBitcoin Relative Strength Index (RSI) This also shows that now is a good time to buy Bitcoin on the dip. Historical trends suggest that a parabolic rally is already in the offing for the flagship cryptocurrency. Once Bitcoin makes its move higher, the broader cryptocurrency market is likely to see a massive rebound.
Crypto Analyst Javon Marks He also alluded to Bitcoin’s RSI and highlighted a bullish divergence pattern that had formed on Bitcoin’s chart, which he said validates a bullish outlook for the crypto token. predicted that Bitcoin could soon rebound towards $72,000 and possibly reach new all-time highs (ATH) if this uptrend continues.
Featured image created with Dall.E, chart by Tradingview.com