Crypto analyst Ali Martinez believes that Dogecoin (DOGE) is preparing for a significant surge that may lead to a temporary shakeout of impatient investors. According to Martinez, DOGE has recently shown a bearish sell signal on the Tom Demark (TD) Sequential indicator on the weekly chart. This indicator generates buy and sell signals based on the closing prices of a specified time period, in this case, nine weeks. However, Martinez points out that the same bearish signal appeared in 2017 and 2020 before massive rallies to new cycle highs and beyond.

Martinez’s chart indicates that DOGE is currently in a large ascending channel, and if it reaches the upper boundary of this pattern, it could potentially reach $14. As of now, DOGE is trading at $0.42.

In regards to Bitcoin, Martinez maintains a bullish outlook despite some market participants predicting a correction after its significant multi-week rally near $100,000. Martinez analyzes social media metrics tracking mentions of “pullback” and “100K” and suggests that the price may move contrary to the prevailing market sentiment.

Martinez also supports his bullish stance by highlighting the average mining cost of Bitcoin, which represents the expenses incurred by miners to earn one BTC. He notes that there is discussion about Bitcoin dipping below $90,000, but historically, during a bull run, BTC has never fallen below its mining cost. Currently, BTC is trading at $96,523.

Disclaimer: The opinions expressed in this article are not investment advice. Investors should conduct their own research before engaging in high-risk investments in Bitcoin, cryptocurrency, or digital assets. Transfers and trades are done at one’s own risk, and any losses incurred are the investor’s responsibility. The Daily Hodl does not endorse the buying or selling of any cryptocurrencies or digital assets, nor does it provide investment advice. Please note that The Daily Hodl participates in affiliate marketing.