A widely followed crypto analyst is issuing a warning to traders saying that Bitcoin\u2019s (BTC<\/a>) downtrend is not over after displaying a bearish signal.<\/p>\n Crypto trader Ali Martinez tells<\/a> his 30,900 followers on the social media platform X that the king crypto appears to be forming a classic bearish flag pattern.<\/p>\n Bearish flag patterns are used in technical analysis to forecast abrupt moves to the downside. They are formed when price consolidates upwards after a strong downtrend, but fails to break a key support level.<\/p>\n \u201cBitcoin seems to be shaping a bear flag \u2013 a classic chart pattern that often signals a continuation of the BTC downtrend. <\/em><\/p>\n The silver lining? A tight stop loss of only 0.86% with a potential take profit near 5%.\u201d<\/em><\/p>\n The trader\u2019s chart indicates that the flag pattern will materialize if Bitcoin fails to flip support around the $28,034 level, causing it to dip down to $26,751.<\/p>\n The trader also says<\/a> that a Bitcoin dip is further supported by the top crypto asset by market cap\u2019s Relative Strength Index (RSI), a widely used momentum indicator that aims to determine if an asset is overbought or oversold.<\/p>\n \u201cNotice that each time the RSI on BTC four-hour chart hits or surpasses 74.21, BTC tends to retrace. The RSI on the four-hour chart recently hit 82.83!\u201d <\/em><\/p>\n The RSI indicator scales from 0 to 100. A reading of below 30 is typically considered bullish while a reading of over 70 is typically considered to be a bearish sign.<\/p>\n Bitcoin is trading for $27,568 at time of writing, up 0.6% in the last 24 hours.<\/p>\n The trader also weighs<\/a> in on Ethereum (ETH<\/a>) and says that the second largest crypto asset by market cap is setting the stage for a bullish reversal based on the market value to realized value (MVRV) indicator.<\/p>\n \u201cEthereum market cycles transition from bearish to bullish when the MVRV (blue line) breaks strongly above the MVRV 180-day SMA (red line). Currently, ETH remains in a distribution phase, awaiting heavy accumulation!\u201d<\/em><\/p>\n The MVRV compares an asset\u2019s total market cap to its realized value and can be used to time market tops and bottoms.<\/p>\n ETH is trading for $1,618 at time of writing.<\/p>\n Don’t Miss a Beat \u2013 Subscribe<\/a> to get email alerts delivered directly to your inbox <\/span><\/em>
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