Is Bitcoin Price Facing A Correction To $46,000? Here’s What This Analyst Thinks

Over the previous week, the Bitcoin price put in one of its finest performances because the begin of 2024, breaking above $50,000 for the primary time since 2021. Whereas the premier cryptocurrency has been transferring principally sideways prior to now few days, it continues to carry its personal above the $51,000 mark.

Nevertheless, a preferred crypto analyst on the X platform has put ahead an attention-grabbing prognosis for the Bitcoin worth, stating that the coin would possibly expertise some bearish stress within the close to future.

Is BTC Headed To $46,000?

On Thursday, February 15, outstanding crypto analyst Ali Martinez sounded the sell alarm – based mostly on the Tom Demark Sequential indicator – for Bitcoin. Based on the analyst, traders ought to anticipate a one-to-four candlesticks correction on BTC’s every day chart within the coming days.

Ali Martinez took to the X platform on Saturday, February 17, to share an in-depth evaluation of an impending correction for the Bitcoin worth. This analysis relies on the distribution of holders’ price foundation throughout the assorted BTC worth zones close to the present worth of the cryptocurrency.

With this on-chain indicator, the energy of any resistance or help stage is determined by the variety of cash acquired by traders throughout the worth vary. And this energy is portrayed by how giant or small the circles (representing the value ranges) are.

Over 1 million addresses purchased 544,870 BTC throughout the $48,000 and $46,500 vary | Supply: Ali_charts/X

As proven within the chart above, the value of Bitcoin appears to be going through important resistance between $51,099 and $52,582. Recognizing this sample, Martinez stated in his post that if the flagship cryptocurrency fails to reclaim the $52,000 stage, then it’s liable to an 8% worth correction. 

An 8% decline from the present level would see the Bitcoin worth drop to between the $48,000 and $46,500 zone. Based on the on-chain resistance knowledge, greater than 1 million addresses purchased 544,870 BTC inside this vary, making it a major help stage.

Bitcoin Worth Overview

As of this writing, the Bitcoin worth stands at round $51,650, reflecting an nearly 0.9% dip prior to now 24 hours. Regardless of the current bearish stress slowing down its momentum, the market chief has maintained most of its revenue from the previous week.

Based on knowledge from CoinGecko, Bitcoin’s worth has jumped by greater than 8% within the final seven days. In the meantime, the cryptocurrency has registered over 20% development to this point within the month of February.

Due to the recent price rise, BTC surpassed the $1 trillion mark when it comes to market capitalization, solidifying its place as the biggest asset within the cryptocurrency sector.

Bitcoin at $51,564 on the every day timeframe | Supply: BTCUSDT chart on TradingView

Featured picture from iStock, chart from TradingView

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