If Historical Pattern Repeats, Bitcoin's 40% Drop Is in Sight, Crypto Strategist Warns – Here's His Prediction
A closely followed crypto analyst warns that Bitcoin (BTC) could see a deep corrective move if a historical pattern takes hold.
Trader Ali Martinez tells his 38,700 followers on social media platform X that Bitcoin tends to experience a significant decline after recovering from a bear market.
According to Martinez, Bitcoin followed the same pattern after sparking major rallies in 2016 and 2019.
“In 2016 and 2019, Bitcoin’s first major correction occurred after the market bottomed when it reached the 0.786 Fibonacci retracement level.
Based on this pattern, if history repeats itself, BTC could continue rising towards $50,000 before a 40% correction.”
Source: Ali Martinez/X
If the same pattern occurs, a 40% correction from the $50,000 level could send Bitcoin crashing towards $30,000.
At the time of writing, Bitcoin is trading at $42,281.
While Martinez sounds the alarm about a possible major correction for Bitcoin, he remains long-term bullish on the top crypto asset by market cap. Martinez says he expects the Bitcoin bull market to continue until the end of 2025 due to BTC's halving cycle.
The halving, which will halve BTC miners' rewards, is scheduled for April 2024. The event has also coincided with the Bitcoin bull market in the past.
Martinez says,
“Bitcoins [is] It is designed on four-year cycles and is determined by halving events, which often reflect price movements.
Historically, this means three years of uptrends followed by a year of downward corrections. According to this cycle, BTC is in a bullish phase that may last until December 2025!”
Source: Ali Martinez/XDon't miss a thing – Subscribe to receive email alerts straight to your inbox
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