Bitcoin he did well in the last few days after experiencing a pointed decline in the first two weeks of September. This rally began in the middle of this week after The Fed has decided to lower the benchmark interest rate by 50 basis points (bps), which proved beneficial for cryptocurrencies.

Interestingly, this rally has already been predicted by several cryptocurrency analysts using technical indicators, one of which is Ali Martinez, who is the champion of TD Sequential. However, in an compelling turn of events, the analyst emphasized that investors should “book some profits,” which is a sign of a potential price correction in the future.

Bitcoin Rally Analysis

Bitcoin, which struggled to gain momentum earlier in the month, entered a sturdy rally that began to take shape in the middle of the week. This rally saw Bitcoin once again break above $63,000 and augment your market dominancee. Furthermore, the rally peaked at $63,830, up about 20.77% from the low of $52,827 reached on September 6.

However, despite the current optimism surrounding Bitcoin’s price action, Martinez issued a warning to investors. In a post shared on social media platform X, Martinez emphasized that TD Sequential, a tool he often uses to analyze market trends, is now indicating the potential for a price correction near the $63,700 level.

Martinez noted that the same TD Sequential indicator that gave a buy signal at $57,400 before Bitcoin’s recent rally is now warning of a possible pullback. This suggests that while the recent rally has been remarkable, the market may be approaching a critical juncture where prices could pull back.

TD Sequential told you to buy #Bitcoin at $57,400 and now it tells you to book a profit at $63,700! photo:twitter.com/0h1yNówkae

— Ali (@ali_charts) September 20, 2024

Is it time to sell?

Looking at Bitcoin’s price action since July, $63,000, which acted as an order block earlier this year, has largely acted as the beginning of a resistance level during price increases. However, while TD Sequential is signaling a potential price correction, Bitcoin bulls are still testing confirmation of the continuation of the rally.

According to another analysis by Ali Martinez, Bitcoin is now testing the 200-day SMA, a critical level confirming a bullish trend. History has shown that failure to break the 200-day SMA has led to significant corrections in the past. If history repeats itself, it could lead to a correction towards $40,000 before the end of the year.

Recent market dynamics and fundamentals have shown that Bitcoin is in a better place now than it has been in the past. There are currently bullish catalysts in the ecosystem, such as the Spot Bitcoin ETF, that would prevent a correction of this magnitude. Furthermore green monthly close in September could better pave the way for a green “Uptober” leading to continued growth in October.

Nevertheless, the $63,000 price levels and the $63,900 200 SMA are vital and should be watched in the context of Bitcoin’s further development.

Featured image created with Dall.E, chart from Tradingview.com