The flagship cryptocurrency<\/a>, <\/span>Bitcoin<\/span>, is fast approaching $31,000 following its gains over the weekend. Analyzing this price action, <\/span>crypto analyst Ali Martinez<\/span><\/a> has predicted Bitcoin\u2019s future trajectory as he suggests that the bears could regain dominance soon enough.\u00a0<\/span><\/p>\n In a <\/span>post<\/span><\/a> shared on his X (formerly Twitter) platform, Martinez noted the potential <\/span>head-and-shoulders<\/span><\/a> pattern that was forming on the Bitcoin daily chart following its upward trend. This chart pattern has always been considered bearish as it suggests that a trend reversal might be on the horizon, meaning there could be a dip in prices soon enough.\u00a0<\/span><\/p>\n<\/p>\n Confirming this assumption, Martinez stated that the daily chart (which he shared alongside the post) \u201chints at a possible sell signal emerging tomorrow [October 23].\u201d According to him, this prediction is backed by the TD Sequential indicator, which is flashing \u201ca green 9 candlestick.\u201d The <\/span>TD Sequential indicator<\/span><\/a> helps traders identify the exact time of a potential reversal.\u00a0<\/span><\/p>\n Martinez also alluded to the <\/span>Relative Strength Index (RSI)<\/span><\/a>, which he mentioned has reached 74.21. He noted that this has been \u201ca level triggering sharp corrections since March.\u201d An RSI of over 70 also suggests that Bitcoin may be overbought with a price correction imminent. This impending price correction can only be averted if Bitcoin manages to clock \u201ca daily candlestick close above $31,560.\u201d\u00a0<\/span><\/p>\n As of the time of writing, Bitcoin is trading at around $30,700, up by over 2% in the last twenty-four hours and a further 10% in the last seven days.\u00a0<\/span><\/p>\n In a <\/span>post<\/span><\/a> on his X platform, Alex Thorn, Head of Firmwide Research, highlighted the role that options traders (short gammas in particular) could play in driving Bitcoin\u2019s price higher in the short term.\u00a0<\/span><\/p>\n He noted that the <\/span>options market<\/span><\/a> makers in Bitcoin are \u201cincreasingly short gamma as BTC spot price moves up.\u201d This current positioning could help \u201camplify the explosiveness of any short-term upward move in the near term,\u201d considering that these short gammas have to buy more Bitcoin to stay \u201cdelta neutral\u201d as Bitcoin\u2019s price continues to rise.<\/span><\/p>\n From his analysis, Thorn was simply explaining that the option market makers will have to place \u2018buy orders\u2019 to hedge against <\/span>their short positions<\/span><\/a> as Bitcoin\u2019s price continues to climb, thereby adding to <\/span>buying pressure<\/span><\/a>, which could cause the crypto\u2019s price to rise higher.<\/span><\/p>\n Meanwhile, he believes that the <\/span>long gammas<\/span><\/a> could provide a safety net for Bitcoin\u2019s price in the event of a price reversal. These long gammas would have to buy back spots in order to remain delta-neutral, thereby providing support and helping resist any further decline (in the short term, at least).\u00a0<\/span><\/p>\n Featured image from Crypto Buyers Club UK, chart from Tradingview.com<\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":" The flagship cryptocurrency, Bitcoin, is fast approaching $31,000 following its gains over the weekend. Analyzing this price action, crypto analyst Ali Martinez has predicted Bitcoin\u2019s future trajectory as he suggests that the bears could regain dominance soon enough.\u00a0 A Price Correction Imminent For Bitcoin In a post shared on his X (formerly Twitter) platform, Martinez […]<\/p>\n","protected":false},"author":2,"featured_media":179353,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[235,203,210,234,231,232,237,238,236,233],"class_list":["post-179352","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain","tag-bitcoin","tag-crypto-currency","tag-elon-musk","tag-ethereum","tag-hyperledger","tag-ibm","tag-mining","tag-nodes","tag-spacex","tag-tesla"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/179352","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=179352"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/179352\/revisions"}],"predecessor-version":[{"id":179355,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/179352\/revisions\/179355"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/179353"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=179352"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=179352"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=179352"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}A Price Correction Imminent For Bitcoin<\/h2>\n
Source: X<\/pre>\n
Options Market Could Contribute To Bitcoin\u2019s Upward Momentum<\/h2>\n
![\"Bitcoin](\"https:\/\/www.newsbtc.com\/wp-content\/uploads\/2023\/10\/Bitcoin-2-1.png?w=460&resize=460%2C223\")
Source: X<\/pre>\n<\/p>\n
BTC bulls running out of steam | Source: BTCUSD On Tradingview.com<\/a><\/pre>\n