A noted crypto analyst says Bitcoin (BTC) is showing numbers that previously suggested the start of a nearly tripled surge.
Crypto strategist Ali Martinez told his 67,100 followers on social media platform X that bitcoin holders who bought the coin within the past one to three months suffered big losses after the cryptocurrency plummeted below $55,000 earlier this month.
Martinez noted that the last time Bitcoin traders experienced similar losses was in September 2023, just before BTC’s sharp rise.
“The last two times Bitcoin traders’ realized losses fell below -12%, BTC surged 104% and 193%, respectively.”
Now, realized losses are back below -12%!
A realized loss is when a trader sells an asset for less than the purchase price.
With Bitcoin currently trading above $60,000, Ali Martinez said that BTC has successfully broken out of the ascending triangle formation, but the cryptocurrency may see a brief pullback that turns the pattern’s resistance into support before continuing to move higher.
“If you are a late entrant, beware! Bitcoin may retest the breakout zone at $59,200 before reaching the $63,800 target.”
The analyst also noted that if BTC surges above $72,000, there will be fuel for Bitcoin to rise further as billions of dollars worth of short positions are waiting to be liquidated.
“If Bitcoin bounces back to $72,300, $5.6B in short positions will be liquidated!”
At the time of writing, Bitcoin was trading at $62,982, up more than 4% from the previous day.
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