Is BTC Headed To $46,000? Analyst Warns of Potential Correction

Bitcoin's Price Reaches Impressive High of $50,000 for First Time in 2021

Bitcoin’s Price Correction to $46,000 Analyst’s Perspective

📈 The Bitcoin price has been putting on quite a show over the past week, breaking above $50,000 for the first time since 2021💥. While it has been moving sideways in recent days, it continues to hold its own above the $51,000 mark. However, a popular crypto analyst has sounded the alarm, suggesting that the price of Bitcoin may experience some bearish pressure in the near future.

💡 On Thursday, prominent crypto analyst Ali Martinez raised concerns about a potential correction in Bitcoin’s price. Using the Tom Demark Sequential indicator, Martinez anticipates a correction of one-to-four candlesticks on BTC’s daily chart in the coming days. This analysis is based on the distribution of holders’ cost basis across various price zones near the current price of Bitcoin.

🔍 The strength of any resistance or support level depends on the number of coins acquired by investors within that range. Martinez illustrates this by using circles to represent different price ranges. His analysis reveals that the price of Bitcoin is facing significant resistance between $51,099 and $52,582. If Bitcoin fails to reclaim the $52,000 level, a potential 8% price correction could be on the horizon.

📈 An 8% decline would bring Bitcoin’s price down to the $48,000 – $46,500 range, a significant support level where more than 1 million addresses have bought 544,870 BTC. This level of buying activity indicates a strong support base that could potentially prevent further downward movement.

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Bitcoin Price Overview

As of now, the Bitcoin price stands at around $51,650, reflecting a small 0.9% dip in the past 24 hours. Despite the recent bearish pressure, Bitcoin has maintained most of its profits from the past week.

According to CoinGecko data, Bitcoin’s value has jumped by over 8% in the last seven days. February has seen the cryptocurrency grow by more than 20%, thanks to recent price surges.

🚀 This impressive growth has pushed Bitcoin’s market capitalization above $1 trillion, solidifying its position as the largest asset in the cryptocurrency sector.

Chart source: BTCUSDT chart on TradingView

🧐 Q&A:

Q: What is the Tom Demark Sequential indicator? A: The Tom Demark Sequential indicator is a technical analysis tool used to identify potential reversal points in asset prices. It helps traders determine if an asset is overbought or oversold, indicating a potential correction in the price.

Q: Why is the $52,000 level important for Bitcoin? A: The $52,000 level is significant because it acts as a resistance level, meaning there is a lot of selling pressure at this price. If Bitcoin fails to reclaim this level, it could trigger a price correction.

Q: How does the number of coins acquired within a price range affect support and resistance levels? A: The number of coins acquired within a price range indicates the strength of support or resistance. More buying activity within a range suggests a stronger support level, while more selling activity indicates a stronger resistance level.

🔮 Future Outlook and Investment Recommendations:

Based on the analysis of the Tom Demark Sequential indicator and the on-chain resistance data, it is crucial to keep an eye on Bitcoin’s price movements. If the $52,000 level is reclaimed, it could lead to further bullish momentum. However, if the price fails to break through, a correction to the $46,500 – $48,000 range could be expected.

As always, it is essential to consider market conditions and conduct thorough research before making any investment decisions. Bitcoin, like any other asset, is subject to market volatility and unpredictable fluctuations.

💡 Recommended Reading:

1. Bitcoin Bull Run: On-Chain Data Points To Declining Retail Participation
2. Coinbase Custody Accounts For 90% of All Bitcoin ETFs – Details

👉 Share this article with your friends and fellow crypto enthusiasts to spread the word about the potential price correction in Bitcoin!

Note: All images and charts used in this article are for illustrative purposes only and do not guarantee future price movements.

References: 1. Ali Martinez on the X platform 2. Ali Martinez’s post on the X platform 3. Bitcoin price image 4. Bitcoin price image 5. TradingView

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