The recent surge in the price of Bitcoin has caught the attention of many investors and analysts alike. One prominent crypto analyst, Ali Martinez, has raised concerns about a potential bearish turn for the premier cryptocurrency. Martinez pointed to the Tom Demark Sequential indicator as a warning sign that Bitcoin may be due for a correction in the coming days.
Martinez delved into on-chain data to support his prediction, highlighting the distribution of holders’ cost basis across different price zones of Bitcoin. The analysis revealed that there is significant resistance for Bitcoin in the price range of $51,099 and $52,582. If the cryptocurrency fails to reclaim the $52,000 level, Martinez suggests that an 8% price correction could be on the horizon. This correction could potentially bring Bitcoin’s price down to the $48,000 to $46,500 zone, which is supported by over 1 million addresses holding 544,870 BTC.
Despite the looming bearish pressure, Bitcoin has managed to maintain its value above $51,000, reflecting a minimal 0.9% decrease in the past 24 hours. The cryptocurrency has seen significant gains in the past week, with an 8% increase, and over 20% growth since the beginning of February. This surge in price has propelled Bitcoin’s market capitalization past the $1 trillion mark, solidifying its status as the dominant asset in the cryptocurrency market.
While the recent performance of Bitcoin has been impressive, analysts like Ali Martinez are cautioning investors about a potential price correction in the near future. By analyzing on-chain data and technical indicators, experts are able to provide valuable insights into the future direction of the cryptocurrency market. As an investor, it is essential to conduct thorough research and consider expert opinions before making any investment decisions in the volatile world of cryptocurrencies.