Over the past week, the price of bitcoin achieved one of its best performances since early 2024, topping $50,000 for the first time since 2021. While the leading cryptocurrency has moved mostly sideways in recent days, it continues to hold up. his above the $51,000 mark.
However, a popular crypto analyst from platform
Is btc heading to $46,000?
On Thursday, February 15, prominent crypto analyst Ali Martinez the sales alarm sounded – based on the Tom Demark sequential indicator – for bitcoin. According to the analyst, investors should anticipate a correction of one to four candles on the daily btc chart in the coming days.
Ali Martínez took to the X platform on Saturday, February 17 to share an in-depth analysis of an impending bitcoin price correction. This evaluation is based on the distribution of holders' costs in the various btc price zones close to the current price of the cryptocurrency.
With this on-chain indicator, the strength of any resistance or support level depends on the number of coins purchased by investors within the price range. And this strength is reflected in how big or small the circles (representing price ranges) are.
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Over 1 million addresses bought 544,870 btc within the $48,000 and $46,500 range | Source: Ali_charts/X
As shown in the chart above, bitcoin price appears to be facing significant resistance between $51,099 and $52,582. Recognizing this pattern, Martínez said in his mail that if the flagship cryptocurrency fails to regain the $52,000 level, then it risks suffering an 8% price correction.
An 8% drop from the current point would see bitcoin price fall between the $48,000 and $46,500 zone. According to on-chain resistance data, over 1 million addresses purchased 544,870 btc within this range, making it a significant support level.
bitcoin Price Overview
At the time of writing, the price of bitcoin sits around $51,650, reflecting a drop of almost 0.9% in the last 24 hours. Even though recent bearish pressure curbed its momentum, the market leader has maintained most of its gains from last week.
According to data from CoinGecko, the value of bitcoin has increased by more than 8% in the last seven days. Meanwhile, the cryptocurrency has recorded growth of more than 20% so far in February.
Thanks to the recent price surge, btc surpassed the trillion-dollar mark in terms of market capitalization, cementing its position as the largest asset in the cryptocurrency sector.
<img loading="lazy" decoding="async" class="size-medium aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/02/Is-Bitcoin-Price-Facing-a-Correction-to-46000-This-is" alt="bitcoin price” width=”2174″ height=”1434″/>
bitcoin at $51,564 on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
Disclaimer: The article is provided for educational purposes only. It does not represent NewsBTC's views on whether to buy, sell or hold investments, and investing naturally carries risks. It is recommended that you conduct your own research before making any investment decisions. Use the information provided on this website at your own risk.
