A Possible Deep Corrective Move for Bitcoin, Warns Analyst
Crypto analyst Ali Martinez is cautioning that Bitcoin (BTC) could experience a significant pullback if a historical pattern repeats itself. Martinez notes that after recovering from a bear market, Bitcoin tends to go through a major correction. This pattern was observed in 2016 and 2019, where BTC experienced its first significant correction after reaching the 0.786 Fibonacci retracement level.
If history repeats itself, Bitcoin may climb towards $50,000 before undergoing a 40% correction. This would mean a potential drop to $30,000 from the $50,000 level. Currently, Bitcoin is trading at $42,281.
Long-Term Bullish Outlook for Bitcoin
Despite the warning of a possible major correction, Martinez remains optimistic about Bitcoin’s long-term prospects. He believes that the Bitcoin bull market will continue until the end of 2025 based on BTC’s halving cycle. The next halving event is scheduled for April 2024 and has historically coincided with bullish trends for Bitcoin.
Martinez explains that Bitcoin operates on four-year cycles driven by its halving events. These cycles typically consist of three years of bullish trends followed by one year of bearish correction. Based on this cycle, BTC is currently in an upward phase that could extend until December 2025.
Hot Take: Potential Correction Ahead, but Long-Term Optimism Remains
Trader Ali Martinez warns that Bitcoin may face a deep corrective move if historical patterns hold true. After recovering from bear markets in 2016 and 2019, BTC experienced significant corrections when it reached the 0.786 Fibonacci retracement level. If history repeats itself, BTC could climb towards $50,000 before undergoing a 40% correction, potentially dropping to $30,000. However, Martinez remains bullish on Bitcoin’s long-term prospects, citing the halving cycle as a key factor. Based on this cycle, he predicts that BTC’s upward phase could last until December 2025.
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