Following a recent surge in the price of Bitcoin, reaching above $50,000 for the first time since 2021, there have been speculations of a potential bearish correction in the near future. A prominent crypto analyst, Ali Martinez, has highlighted the possibility of a one-to-four candlesticks correction based on the Tom Demark Sequential indicator. This prediction is crucial for investors who are closely monitoring the price movement of Bitcoin in the coming days.
Martinez’s analysis is not solely based on technical indicators but also considers on-chain data related to Bitcoin’s price zones. The distribution of holders’ cost basis within specific price ranges can determine the strength of support or resistance levels. By analyzing the number of coins acquired by investors at different price points, Martinez predicts that there is significant resistance in the $51,099 to $52,582 range. This information suggests that a failure to reclaim the $52,000 level could lead to an 8% price correction, potentially dropping Bitcoin’s price to the $48,000 to $46,500 zone.
Market Performance and Growth
Despite the recent bearish pressure and the possibility of a price correction, Bitcoin has shown resilience and maintained most of its profits from the past week. CoinGecko data indicates that Bitcoin’s value has surged by over 8% in the last seven days, with a remarkable 20% growth so far in February. The cryptocurrency’s market capitalization has also exceeded $1 trillion, solidifying its position as the leading asset in the crypto sector.
It is crucial to note that the information provided in this analysis is for educational purposes and should not be considered as investment advice. Investing in cryptocurrencies carries inherent risks, and individuals are strongly encouraged to conduct their own research before making any investment decisions. It is important to approach cryptocurrency investments with caution and always be aware of the potential risks involved.
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