Bitcoin price has recorded a surge of nearly 1% today but experts remain cautious about the future trajectory of the coin. Citing technical charts and historical trends, a popular market analyst said that BTC might crash to $46,000 if it drops below a key support level ahead. This comment has sparked discussions in the market, especially as the broader crypto market witnessed volatile trading lately.
Renowned crypto analyst Ali Martinez has pointed out a historical pattern that could signal trouble for BTC. According to his analysis, Bitcoin price follows a repetitive cycle when it drops below the 50-week Moving Average (MA).
Martinez explained that in 2014, BTC had this support and declined to test the 200-week MA. The same scenario repeated in 2018 and during the 2020 COVID crash. Again, in 2022, Bitcoin fell not just to the 200-week MA but even below it. Currently, the flagship crypto’s 50-week MA stands at $75,500. If this level breaks, history suggests a plunge to the 200-week MA at $46,000.
Meanwhile, this technical outlook has sparked concerns among traders. Many are closely monitoring whether BTC can hold this crucial support or if another major correction is on the horizon.
While the downside risk remains a concern, Martinez also highlighted Bitcoin price’s key resistance level. He pointed out that the strongest supply barrier is at $95,000. Around 1.2 million investors hold nearly 726,000 BTC at this level, making it a critical point for any potential upward movement.
If BTC manages to reclaim bullish momentum, breaking past this supply wall will be a challenge. Until then, traders must remain cautious, as any break below support could lead to a sharp decline.
BTC price today jumped over 1% and exchanged hands at $$83,165, while its one-day volume fell 22% to $37.7 billion. Notably, the crypto has touched a 24-hour high and low of $84,358.58 and $80,635.25, respectively. Besides, BTC Futures’ Open Interest also rose by 1.3% in the 24-hour timeframe, CoinGlass data showed.
Adding to the bullish momentum, a recent BTC price analysis hints at a potential rally to $118K. Notably, the analysis comes as the US CPI comes in lower than expected and the tension between Russia and Ukraine eases, sparking market optimism.
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