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?
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
