Amid the expected positive effect of the recently closed Bitcoin halving During this event, Ali Martinez, a well-known cryptocurrency analyst and trader, issued a notable warning about BTC’s trajectory: to predict that the price of the crypto asset could undergo a correction towards the $59,000 mark.
Potential Declines for Bitcoin
Martinez’s analysis examines the potential for Bitcoin to take a possible downward plunge in the near term. Considering the chart of BTC in the 12-hour time frame, the analyst noted that two signals have manifested that signal potential price declines.
Related reading: Analyst Points to a Possible 30% Bitcoin Correction, Calls for Caution
These include a red candlestick of the TD (Tom Demark) Sequential and a deathcross between the 50 and 100 Simple Moving Average (SMA). As a result, Martinez believes the development could cause a price drop $63,300. Additionally, he urged the community to be ready for further declines to around $61,000 and $59,000.
Martinez previously highlighted that the TD Sequential indicator on the 12-hour chart has issued a sell signal. This signal came in light of Bitcoin experiencing a parallel channel center resistance. Against this background, he underlines a cautious approach in times like these, given the history of this indication, especially in the event that the digital asset falls below the $65,500 support level.
According to the expert, the coin’s accumulation trend score has dropped to zero. Specifically, this suggests that whales currently distribute BTC or not hoard it.
It appears that Martinez’s prediction has come true as BTC is already trading below the aforementioned support level. After the price drop, Bitcoin has also seen a notable drop in accumulation.
There has been a consolidation in the price of Bitcoin in recent weeks as the price has been unable to maintain its gains from the all-time high of $73,000 reached in March. On Thursday, BTC witnessed a notable drop to around $63,000, with higher inflation and slower growth in the United States seen as the catalyst for the decline.
BTC’s path to $1 million
Even though there have been some short-term fluctuations with Bitcoin, the long-term trend is still positive. Strike Chief Executive Officer (CEO) Jack Mallers has predicted long-term growth for BTC of as much as $1 million.
Mallers shared his views on the future trajectory of digital assets during a interview with David Lin. The financial instability on the bond markets, in which the banks are significantly involved, is the basis on which Maller bases his projection.
He claims that significant liquidity injections could come from the potential bailout needed to stabilize these markets, pushing up the price of assets like Bitcoin. Mallers believes that the value of BTC will rise, highlighting the limited availability of BTC combined with rising demand.
At the time of writing it is BTC was trading at $64,207, indicating an increase of 0.72% in the last 24 hours. Despite the crypto asset showing positive signs, trading volume has fallen by more than 8% in the past day.
Featured image from iStock, chart from Tradingview.com
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