In recent times, Bitcoin has shown some remarkable progress in terms of price movement, reaching above $50,000 for the first time in years. This surge in price has caught the attention of many investors and analysts who are closely monitoring the cryptocurrency’s performance. Despite the positive trend, a well-known crypto analyst has raised concerns about a potential bearish correction in the near future.
On Thursday, February 15, prominent crypto analyst Ali Martinez warned about a possible downturn in the Bitcoin price based on the Tom Demark Sequential indicator. According to Martinez, investors should brace themselves for a correction in the coming days, with a projected one-to-four candlesticks correction on BTC’s daily chart. Further analysis conducted by Martinez on February 17 revealed a potential correction based on the distribution of holders’ cost basis across various BTC price zones.
Martinez’s evaluation is primarily focused on the strength of resistance and support levels determined by the number of coins acquired by investors within specific price ranges. The visual representation of this data shows significant resistance between $51,099 and $52,582, indicating a critical price zone for Bitcoin. Failure to reclaim the $52,000 level could lead to an 8% price correction, potentially dropping the price to the $48,000 and $46,500 range.
Despite the recent bearish pressure on Bitcoin’s price, the cryptocurrency has managed to retain most of its profits from the past week. Data from CoinGecko shows that Bitcoin’s value has surged by over 8% in the last seven days, with a remarkable 20% growth in February alone. This significant price rise has catapulted Bitcoin’s market capitalization above $1 trillion, cementing its position as the top asset in the crypto market.
The future of Bitcoin’s price remains uncertain as analysts continue to speculate on potential corrections and market movements. While recent data indicates a possible downturn in the near future, the overall trajectory of Bitcoin’s price suggests a strong bullish sentiment among investors. As always, it is essential for investors to conduct thorough research and analysis before making any investment decisions in the volatile cryptocurrency market.