Crypto Analyst Ali Martinez warned the crypto community not to get too excited about the recent market rally triggering the filing of Spot Solana ETFs. Bitcoin (BTC) and the broader crypto market witnessed a relief bounce following recent high developmentsbut the analyst highlighted what could lead the market back into a downtrend.
Why the Crypto Community Shouldn’t Get “Too Excited” After Solana’s ETF Rally
Martinez mentioned in a publish that the crypto community shouldn’t get too excited because US$ 22 million will be settled of the crypto market if Bitcoin drops to $60,700. A significant amount in liquidations could lead to a further decline in the crypto market, especially with other traders and investors looking to close their positions for fear of being liquidated.
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Martinez issued the warning following a market rally in Bitcoin and altcoins. This rally followed news that asset manager VanEck had filed for a Spot Solana ETF as US Securities and Exchange Commission (SEC). Solana, in particular, saw a price gain of over 8% and surged to $150 following the news.
The crypto market was also boosted in anticipation of the US Presidential Debate. The crypto community predicted that crypto would be a major talking point during the discussion, although that did not happen. Regardless, there is still enough reason for the crypto market to be excited, as VanEck’s filing for the first Solana Spot ETF marks a significant milestone not only for the Solana ecosystem, but for the crypto ecosystem at large.
Other asset managers can be expected to file for a Solana Spot ETF in due course, and the potential approval of these funds could usher in more crypto ETFs, just as the approval of a Bitcoin and Ethereum Spot ETF prompted VanEck to file for one. Spot Solana ETF. Meanwhile, the Ethereum ETFs in Spotlight They are expected to begin trading soon, providing further bullish momentum for the crypto market.
Technical indicators also point to further Bitcoin highs
Martinez recently highlighted an Adam and Eve bottom pattern, which he claims appears to be forming on the Bitcoin chart. He stated that this signals a potential 6% increase to $66,000 if Bitcoin can maintain a candlestick near $62,000. Furthermore, Martinez recently noted that the crypto market sentiment has turned to fear, suggesting that cryptocurrency prices are currently undervalued and that a market recovery is imminent.
![Spot Solana ETFs: Analyst Says Don't Get Too Excited About Market Recovery 1 Solana 1S](https://thegurumedia.com/wp-content/uploads/2024/06/Solana-1-2.png)
According to MartinezBitcoins relative strength index (RSI) It also shows that this is a good time to buy Bitcoin’s dip. Historical trends suggest that a parabolic rally is already predicted for the leading cryptocurrency. Once Bitcoin rises, the broader crypto market is expected to enjoy a huge bounce.
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![Spot Solana ETFs: Analyst Says Don't Get Too Excited About Market Recovery 2 Solana 2](https://thegurumedia.com/wp-content/uploads/2024/06/Solana-2-2.png)
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 validated a bullish outlook for the crypto token. He foreseen that Bitcoin could soon recover to $72,000 and possibly new all-time highs (ATHs) if this bullish pattern holds.
Featured image created with Dall.E, chart from Tradingview.com