Over the past week, the Bitcoin price put in one of its finest performances since the start of 2024, breaking above $50,000 for the first time since 2021. While the premier cryptocurrency has been moving mostly sideways in the past few days, it continues to hold its own above the $51,000 mark.
However, a popular crypto analyst on the X platform has put forward an interesting prognosis for the Bitcoin price, stating that the coin might experience some bearish pressure in the near future.
Is BTC Headed To $46,000?
On Thursday, February 15, prominent crypto analyst Ali Martinez sounded the sell alarm – based on the Tom Demark Sequential indicator – for Bitcoin. According to the analyst, investors should anticipate a one-to-four candlesticks correction on BTC’s daily chart in the coming days.
Ali Martinez took to the X platform on Saturday, February 17, to share an in-depth analysis of an impending correction for the Bitcoin price. This evaluation is based on the distribution of holders’ cost basis across the various BTC price zones near the current price of the cryptocurrency.
With this on-chain indicator, the strength of any resistance or support level depends on the number of coins acquired by investors within the price range. And this strength is portrayed by how large or small the circles (representing the price ranges) are.
Over 1 million addresses bought 544,870 BTC within the $48,000 and $46,500 range | Source: Ali_charts/X
As shown in the chart above, the price of Bitcoin seems to be facing significant resistance between $51,099 and $52,582. Recognizing this pattern, Martinez said in his post that if the flagship cryptocurrency fails to reclaim the $52,000 level, then it is at risk of an 8% price correction.
An 8% decline from the current point would see the Bitcoin price drop to between the $48,000 and $46,500 zone. According to the on-chain resistance data, more than 1 million addresses bought 544,870 BTC within this range, making it a significant support level.
Bitcoin Price Overview
As of this writing, the Bitcoin price stands at around $51,650, reflecting an almost 0.9% dip in the past 24 hours. Despite the recent bearish pressure slowing down its momentum, the market leader has maintained most of its profit from the past week.
According to data from CoinGecko, Bitcoin’s value has jumped by more than 8% in the last seven days. Meanwhile, the cryptocurrency has registered over 20% growth so far in the month of February.
Thanks to the recent price rise, BTC surpassed the $1 trillion mark in terms of market capitalization, solidifying its position as the largest asset in the cryptocurrency sector.
Bitcoin at $51,564 on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
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Author: Opeyemi Sule
