Bitcoin Its price has lost more than 6% in value in the last week, frequently falling below $40,000. Although the price has shown a slight recovery in the last 24 hours, overall weaknesses continue.
Analyst Ali Martinez published a remarkable analysis of the $38,000 level, which he believes will determine the course of the BTC price. According to Martinez, a close below this level could be the first signal that the declines in BTC will continue. This could mean that the next target will be the support zone around $33,000.
This critical support area is a cluster of many key technical intersections, including the lower boundary of a parallel channel, the 0.5 Fibonacci retracement level, and the 50-week simple moving average. The combination of these factors creates strong support that has the potential to prevent further declines in Bitcoin price and stands out as a key level for market participants to observe closely.
Ali Martinez also examined the historical trends observed in the last two Bitcoin bull cycles and found an interesting trend. Martinez notes that during these previous cycles, Bitcoin typically retreated to the 50% Fibonacci level after reaching the 78.6% Fibonacci level.
Drawing parallels with these historical patterns, Martinez observes that the Bitcoin price recently reached the 78.6% Fibonacci level again, indicating a potential correction. Martinez predicts that if the historical pattern continues, the price could fall as low as $32,700, aligning with the 50% Fibonacci retracement level.
Grayscale’s heavy Bitcoin selling continues since the ETF approval amid a strong sell-off in GBTC shares. In a significant move reported by Arkham, Grayscale made a significant transfer of 17,140 Bitcoins, equivalent to approximately $660 million, these funds were moved to Coinbase Prime Deposit.