In the last few days, the Bitcoin price has shown significant upward movement, surpassing the $50,000 mark for the first time in years. Nonetheless, a well-known crypto analyst on the X platform has raised concerns about potential bearish pressure in the near future. According to the analyst, investors should be prepared for a correction in BTC’s price based on the Tom Demark Sequential indicator.
The analyst, Ali Martinez, recently shared a detailed evaluation of the impending correction for Bitcoin’s price. This assessment is founded on the distribution of holders’ cost basis across various BTC price zones close to the current value of the cryptocurrency. The strength of any resistance or support level is determined by the number of coins acquired by investors within that price range, which is depicted by the size of the circles representing the price zones.
According to the analysis, Bitcoin is currently encountering significant resistance between $51,099 and $52,582. Martinez suggested that failure to surpass the $52,000 mark could lead to an 8% price correction, potentially dropping the price to the range between $48,000 and $46,500. This range is supported by the fact that more than 1 million addresses acquired 544,870 BTC within it.
Despite the recent dip in price, Bitcoin has managed to maintain most of its gains from the previous week. As of the latest data, the price stands at around $51,650, reflecting a slight drop of almost 0.9% in the past 24 hours. Over the last seven days, Bitcoin has seen an increase of over 8% in value and has recorded a growth of more than 20% in February alone. This surge has propelled Bitcoin’s market capitalization above $1 trillion, solidifying its position as the leading asset in the cryptocurrency market.
It is important to note that the information provided in this article is for educational purposes only and does not reflect the views of NewsBTC regarding investment decisions. Investing in cryptocurrencies carries inherent risks, and individuals are encouraged to conduct their own research before making any investment choices. All information provided on this platform should be used at the reader’s own discretion and risk.
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