A prominent crypto analyst has updated his outlook for Bitcoin (BTC) and decentralized finance (DeFi) altcoin Maker (MKR), saying Ethereum (ETH) is headed for a bullish turn.
Cryptocurrency trader Ali Martinez told his 69,000 followers on social media platform X in a new strategy session that the number one smart contract platform by trading volume appears ready to break out of its ascending triangle pattern, but has turned bearish.
“Ethereum is trying to break out of the ascending triangle, which could lead to a drop to $2,430. However, if ETH closes above $2,560, this bearish outlook will be invalidated.”
At the time of writing, Ethereum is trading at $2,582, up 4% over the last 24 hours.
Let’s talk about the big cryptos. Martinez said that the Tom DeMarc Sequential Indicator (an indicator that traders use to identify reversal points in an asset) appears to be sending a sell signal on the hourly chart of BTC, indicating that a price correction could be imminent.
The strategist noted that BTC’s market cycle has been bullish and bearish several times since August, and has recently taken a bearish turn.
At the time of writing, Bitcoin is trading at $60,742, up 4% over the past day.
Concluding his analysis of Maker, the issuer of the stablecoin DAI, Martinez said the DeFi platform is likely to collapse despite its recent rebrand.
“It looks like MakerDAO has rebranded to SkyEcosystem, but it is doubtful that this move will change the current outlook. The daily chart still shows a bear flag with MKR’s expected target at $1,290.”
MKR is trading at $1,827 at the time of writing, down 1.4% over the last 24 hours. A decline to Martinez’s predicted price tag would see MKR down about 30% from current levels.
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