Will Bitcoin fall further? BTC may face correction with possible later recovery, according to analysis

Over the past 24 hours, the cryptocurrency market has seen notable volatility, especially in relation to Bitcoin (BTC), the market’s main cryptocurrency. The global crypto market capitalization is $1.68 trillion, a decrease of 4.89% in the last day.

According to recent analysis by Ali Martinez, a renowned industry analyst, there are growing indications that Bitcoin could face a sharp decline, potentially surpassing the $42,000 mark.

Martinez, in his Jan. 12 post, highlighted the deterioration of Bitcoin’s weekly chart, describing it as “increasingly uglier.” This assessment is especially worrying for investors and cryptocurrency enthusiasts. Using the Tom DeMark Sequential (TD) indicator, often employed to identify trend reversals and exhaustion of price movements, Martinez strengthened his argument with a technical focus.

The scenario outlined by the analyst paints a picture of “chaos before relief”. In his analysis, Martinez noted that the price of BTC could dip as high as $40,500. This prediction comes at a critical moment, considering that, until then, Bitcoin was quoted at US$42,600, according to data from MarketCap.

This weekly #Bitcoin candlestick is looking uglier by the minute!

Remember, the TD presents a sell signal anticipating a one to four weekly candlesticks correction before $BTC resumes the uptrend. https://t.co/fOtoU4JQCZ pic.twitter.com/ZdjpE2PJbr

— Ali (@ali_charts) January 12, 2024

Interestingly, this downside prediction comes after a brief rise in Bitcoin, driven in part by the start of Bitcoin ETF trading on January 11, where the price reached the mark near $49,000. However, this increase proved to be ephemeral, and the launch of the ETFs ended up being a “news sell-off” event, contributing to a substantial drop between January 11th and 12th.

Will Bitcoin fall further? Martinez’s prediction suggests not only a potential drop, but also the possibility of a subsequent bounce, which could take Bitcoin above $52,000. This duality reflects the complex and dynamic nature of the cryptocurrency market.

Disclaimer:

The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.