Bitcoin could undergo correction if it reaches this level, says analyst

The price trajectory of Bitcoin (BTC) took center stage after the cryptocurrency once again surpassed $70,000. BTC reached US$72,000, but saw its price fall 1.4% this Wednesday (22).

This fluctuation occurs amid a market recovery driven by optimism surrounding the potential approval of the Ethereum spot ETF in the United States. In fact, many analysts expect BTC to renew its all-time high this week.

One of these analysts is Ali Martinez, who points to a rise in BTC to a new top of $77,000. However, Martinez also warned about a potential risk for investors: the correction in the price of BTC.

Bitcoin a US$ 77 mil

The analyst published his ideas on his profile on X (formerly Twitter) and generated discussions. Based on an indicator known as “MVRV price ranges”, Martinez suggests that Bitcoin has a major objective of remaining above the $65,125 level.

If this support holds, BTC would have enough strength to rise and form a new top at $77,593. The analyst also highlighted that there is an important supply zone between $70,180 and $70,600.

According to this analysis, 450 thousand addresses purchased 273 thousand BTC in this zone, indicating strong support levels. He further added that “the odds are in the buyers’ favor.”

Martinez’s optimistic outlook is in line with market optimism. However, while the prospects of Bitcoin’s price surpassing $77,000 are attractive, he also urged caution amid market volatility.

Assessing the risks

Despite the bullish momentum, analysts warn against overlooking the potential risks associated with Bitcoin’s price movement. While Martinez’s predictions paint an optimistic picture, market dynamics can change quickly, leading to unexpected declines.

It is worth noting that reaching the top of US$77,593, BTC will have new zones of discovery, which always brings more volatility to the market. Therefore, the analyst states that the increase may not occur linearly, but rather with corrections that can reach a drop of up to 10%.

At the time of writing, the price of Bitcoin is down 1.7% in the last 24 hours, worth $70,016.20. Despite today’s price drop, BTC price has recorded gains of nearly 12% over the past seven days.