Crypto Analyst Warns Against 40% Correction After Bitcoin Price Climbs $50,000

Bitcoin (BTC), the world’s largest and oldest cryptocurrency, had fallen below $42,000 today before recovering. The pullback could be attributed to over $10 million worth of BTC options expiry on Friday, December 29, 2023. However, in a recent post on X, Ali Martinez, a top crypto analyst, predicted that Bitcoin price could hit $50,000 before experiencing a 40% correction.

Analyst’s Insight On Bitcoin’s Future Performance

The above-mentioned prediction could seem to be bullish in the short-term but a massive correction would await thereafter. Considering a high of $50,000, a 40% correction would bring the price to as low as $30,000. Martinez made such a prediction considering Bitcoin’s pullbacks in the past.

On X, he noted, “In 2016 and 2019, after finding a market bottom, #Bitcoin’s first major correction occurred upon reaching the 0.786 Fibonacci retracement level.” The analyst spotted a similarity between the historical trends and the current chart pattern. Hence, he concluded that if history repeats itself, BTC would propel up to $50,000 before a significant pullback.

Also Read: Crypto Analyst Predicts Bitcoin Price Correction To $26K Before Hitting $130K

Both bulls and bears could take advantage of the opportunity. Bulls could choose to hold BTC considering the anticipated bull run and the possibility of hitting the $50,000 mark. Whilst, bears could rejoice if the price drops to $30,000, as suggested by Martinez.

Furthermore, the correction to $30,000 would provide a better entry point for investors looking for more a affordable BTC price. However, if the BTC value plummets to such an extent, it could trigger a shakeout of the overleveraged long positions.

Bitcoin Price Decline Continues

In today’s trading session, Bitcoin fell below the $42,000 mark and recovered thereafter. Moreover, in the past seven days, it has lost over 3% in value after hitting $44,000. At press time, the BTC price had dropped by 1.34% as the crypto traded at $42,112.96 on Saturday, December 30, 2023. In addition, the market cap slumped by 1.33% to $824.92 billion.

However, the 24-hour trade volume registered a slight increase of 3.79% and was recorded to be $23.68 billion. Also, it’s worth noting that despite the strong declines recently, Bitcoin managed to provide 1-month returns of over 11% as it attained a high of $44,705.32 during this period.

Also Read: Bitcoin Price Prediction: Will $BTC Recovery Surpass $50000 in December?