Analyst Ali Martinez talks about a deep correction in Bitcoin price if a historical pattern is realized. Crypto analyst Benjamin Cowen also says that BTC is likely to make a significant correction.
Analyst expects first a rally and then a sharp correction for Bitcoin
cryptokoin.comAs you follow from , BTC is failing to gain traction despite spot Bitcoin ETF news. BTC is fluctuating between $42 thousand and $43 thousand. In addition, analysts warn of a sharp decline. Popular analyst Ali Martinez says Bitcoin is prone to a significant pullback after emerging from a bear market. According to the analyst, Bitcoin followed the same pattern after making major rallies in 2016 and 2019. In this context, the analyst makes the following statement:
In 2016 and 2019, after finding a market bottom, Bitcoin’s first major correction occurred when it reached the 0.786 Fibonacci retracement level. Based on this pattern, if history repeats itself, BTC could climb towards $50,000 before experiencing a 40% correction.
If the same pattern continues, a 40% correction from $50,000 would mean the Bitcoin price would drop to $30,000.
“In the long term, the bull market will continue until the end of 2025!”
Ali Martinez remains bullish for the long term as he sounds the alarm about a possible major correction for Bitcoin. Based on BTC’s halving cycle, Martinez suggests that the bull market will last until the end of 2025. He says. In this regard, Martinez says:
Bitcoin is designed around four-year cycles driven by halving events, which typically reflect price movement. Historically, this means a three-year uptrend followed by a one-year downtrend. According to this cycle, BTC is in an uptrend phase that potentially extends until December 2025!
Benjamin Cowen: A significant price movement is coming for BTC!
Crypto analyst Benjamin Cowen also looks at Bitcoin’s past price movements. Based on this, the analyst says that there is a high chance of a significant correction soon. Cowen notes that he is paying attention to Bitcoin’s 100-week simple moving average (SMA). According to the analyst, every time Bitcoin breaks above the 100-week SMA, it tends to bounce back to retest before continuing upwards. BTC broke above the 100-week SMA a few months ago. Since then, Cowen says there is a downside risk from a historical perspective. The analyst also notes that the Federal Reserve’s actions will determine whether Bitcoin holds the 100-week SMA as support. In this context, the analyst makes the following assessment:
Historically, we have retested the 100-week moving average at this point in the cycle. This is something that we recognize seems like something that occurs at some stage in the cycle. We did not experience a hard landing in 2016. (…) Bitcoin basically retested the 100-week SMA and continued to rise. However, we tested this again in the last cycle, we experienced a jump but eventually started to decline. So I think we’ll see some sort of backtest of the 100-week moving average at some point, probably within the first few months of 2024. After that, the question of whether this continues will likely depend on whether the Fed makes a soft landing or a hard landing like the last cycle.
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For the rest of the article, These Bottoms are on the Cards for Bitcoin: A Warning Came from Two Master Analysts!