28 June 2024
Crypto analyst Ali Martinez has warned the crypto community not to get too excited about the recent market recovery trigger by Spot Solana ETFs filing. Bitcoin (BTC) and the broader crypto market witnessed a relief bounce following recent bullish developments, but the analyst highlighted what could send the market into a downtrend again.
Why The Crypto Community Should Not Get “Too Excited” After Solana ETFs Rally
Martinez mentioned in an X (formerly Twitter) post that the crypto community should not get too excited because $22 million will be liquidated from the crypto market if Bitcoin drops to $60,700. A significant amount in liquidations could lead to further decline in the crypto market, especially with other traders and investors looking to close their positions for fear of being liquidated.
Martinez issued this warning following the market rebound made by Bitcoin and altcoins. This rebound followed news that asset manager VanEck had filed for a Spot Solana ETF with the US Securities and Exchange Commission (SEC). Solana, in particular, saw a price gain of over 8% and rallied to as high as $150 following the news.
The crypto market was also buoyed in anticipation of the US presidential debate. The crypto community had anticipated crypto being a major talking point during the discussion, although that didn’t happen. Regardless, there is still enough reason for the crypto market to be excited, as VanEck’s filing for the first-ever Spot Solana ETF marks a significant milestone not just for the Solana ecosystem but the crypto ecosystem in general.
Other asset managers can be expected to file for a Spot Solana ETF in due time, and the potential approval of these funds could usher in more crypto ETFs just as the approval of a Spot Bitcoin and Ethereum ETF motivated VanEck to file for this Spot Solana ETF. Meanwhile, the Spot Ethereum ETFs are expected to begin trading soon, providing more bullish momentum for the crypto market.
Technical Indicators Also Point To More Rallies For Bitcoin
Martinez recently highlighted an Adam and Eve bottoming pattern, which he claimed seems to be forming on Bitcoin’s chart. He stated that this signals a potential 6% rise towards $66,000 if Bitcoin can maintain a candlestick close above $62,000. Additionally, Martinez recently noted that the crypto market sentiment has turned into fear, which suggests that crypto prices are currently undervalued and that a market rebound is imminent.
According to Martinez, Bitcoin’s relative strength index (RSI) also shows that this is a good time to buy the Bitcoin dip. Historical trends suggest that a parabolic rally is already on the cards for the flagship crypto. Once Bitcoin makes its move to the upside, the broader crypto market is expected to enjoy a massive bounce.
Crypto analyst Javon Marks also alluded to Bitcoin’s RSI and highlighted a bullish divergence pattern that had formed on Bitcoin’s chart which he claimed validates a bullish outlook for the crypto token. He predicted that Bitcoin could soon make a rebound to $72,000 and possibly new all-time highs (ATHs) should this bullish pattern hold.