A closely watched crypto analyst warns that Bitcoin (BTC) could witness a deep corrective move if a historical pattern plays out.
Trader Ali Martinez tells his 38,700 followers on the social media platform
According to Martinez, Bitcoin followed the same pattern after causing major rallies in 2016 and 2019.
“In 2016 and 2019, after finding a market bottom, Bitcoin’s first major correction occurred upon reaching the Fibonacci retracement level of 0.786.
If history repeats itself, BTC could continue to rise towards $50,000 based on this pattern before a 40% correction occurs.”
Should the same pattern play out, a 40% correction from the $50,000 level could see Bitcoin fall towards $30,000.
At the time of writing, Bitcoin is trading at $42,281.
While Martinez is sounding the alarm about a potential major correction for Bitcoin, he remains bullish on the leading cryptocurrency by market cap in the long term. Martinez says he sees the Bitcoin bull market continuing until the end of 2025 based on BTC’s halving cycle.
The halving, which will halve rewards for BTC miners, is scheduled for April 2024. Historically, the event has also coincided with Bitcoin’s bull markets.
says Martinez,
“Bitcoin [is] designed around four-year cycles driven by the halving events, which often mirror price action.
Historically, this translates into three years of bullish trends, followed by one year of bearish correction. According to this cycle, BTC is in an upward phase, possibly extended until December 2025!”
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Featured image: Shutterstock/delcarmat