In the recent days, Bitcoin has shown remarkable performance in the market, surpassing the $50,000 mark for the first time since 2021. Despite some sideways movement, the cryptocurrency has managed to maintain its position above $51,000. However, a leading crypto analyst has raised concerns about a potential bearish trend in the near future.
Prominent crypto analyst Ali Martinez, utilizing the Tom Demark Sequential indicator, has highlighted a possible correction in the Bitcoin price. According to Martinez, there could be a one-to-four candlesticks correction on BTC’s daily chart in the upcoming days. This analysis is based on the distribution of holders’ cost basis in relation to the current price zones of Bitcoin.
On-chain Indicators
Martinez’s evaluation is focused on the on-chain indicators, specifically looking at the number of coins acquired by investors within certain price ranges. The strength of support or resistance levels is determined by the quantity of coins held within those ranges, reflected by the size of circles on the chart.
Resistance Levels
Based on the analysis, Bitcoin appears to be encountering strong resistance between $51,099 and $52,582. Martinez warns that failure to reclaim the $52,000 level could result in an 8% price correction, potentially leading the price to drop to the $48,000 and $46,500 zone. This range is supported by the fact that over 1 million addresses bought 544,870 BTC within it.
Despite the recent dip in the Bitcoin price, the cryptocurrency has maintained most of its profits from the previous week. Over the past seven days, Bitcoin has seen an 8% increase in value, with a total growth of over 20% in February. This surge has propelled Bitcoin’s market capitalization above $1 trillion, solidifying its position as the leading asset in the cryptocurrency industry.
Final Thoughts
While the future of Bitcoin’s price remains uncertain, it is crucial for investors to stay informed and conduct thorough research before making any investment decisions. The analysis provided by experts like Ali Martinez can serve as a valuable tool in understanding market trends and potential risks. Remember, investing in cryptocurrency carries inherent risks, and it is essential to exercise caution and diligence in all financial decisions.
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