In the recent weeks, Bitcoin has showcased a remarkable performance, surpassing the $50,000 mark for the first time since 2021. Despite this upward momentum, a well-known crypto analyst has raised concerns about potential bearish pressure on the horizon. Ali Martinez, a prominent analyst, has pointed to the Tom Demark Sequential indicator to suggest a possible correction in the Bitcoin price. According to Martinez, investors should be prepared for a one-to-four candlestick correction in the coming days.
Martinez further delved into the on-chain data to support his prediction of a price correction in Bitcoin. By analyzing the distribution of holders’ cost basis across various price zones, Martinez identified a key resistance level between $51,099 and $52,582. The on-chain indicator revealed that over 1 million addresses had acquired 544,870 BTC within the $48,000 to $46,500 range, indicating a significant support level for the cryptocurrency.
As per Martinez’s analysis, failure to reclaim the $52,000 level could result in an 8% price correction for Bitcoin. This would bring the price down to the $48,000 to $46,500 zone, where a substantial number of addresses hold a significant amount of BTC. Currently, Bitcoin is trading around $51,650, reflecting a slight dip in the past 24 hours. Despite this minor pullback, the cryptocurrency has maintained most of its gains from the previous week.
Over the past seven days, Bitcoin has experienced an 8% increase in value, with a growth of over 20% in the month of February alone. This surge in price propelled Bitcoin’s market capitalization past the $1 trillion mark, solidifying its position as the leading asset in the crypto market. While there may be looming bearish signals, the overall market sentiment towards Bitcoin remains positive.
It is essential to note that all information provided in this article is for educational purposes only. The views expressed by analysts do not necessarily align with those of NewsBTC. Investing in cryptocurrencies carries inherent risks, and individuals are strongly advised to conduct their own research before making any investment decisions. Any investments made based on the information provided in this article are done so at the individual’s own risk.