bitcoin price saw a pullback on Tuesday amid overall bearish sentiment surrounding the cryptocurrency market. after the digital asset reached the $69,000 threshold.
bitcoin could suffer a further correction
Following the correction, several predictions of a further drop in bitcoin price have emerged from leading crypto analysts. Cryptocurrency analyst and trader Ali Martínez has highlighted some indicators that suggest a continued price decline.
Martínez took to social media platform X (formerly Twitter) to share their projections with the crypto community. According to Ali Martínez, on the daily bitcoin chart, the Tom DeMark (TD) Sequential Indicator Currently “showed a sell signal.”
The cryptanalyst believes that this development deserves to be closely monitored. This is because the indicator “has a strong track record of predicting bitcoin trends” since the beginning of the year.
He further noted that the indicator suggested a buy signal in early January, followed by a 34% rise in the price of bitcoin. Furthermore, in the middle of last month, the indicator also suggested a sell signal, following which bitcoin plummeted by more than 4%.
With the TD Sequential currently developing a sell signal, btc could be about to undergo a correction in the short term. However, there is no guarantee that the btc price will see a correction after the signal.
Martínez also underlined the accuracy of the pointer in predicting the price movement of btc, which he believes is “remarkably crazy.” In a previous projection, Martínez stated that btc has decreased between “1.5% and 4.7%, every time the indicator recommends a sale” since February 15.
As a result, short-term traders must watch the trend carefully to position themselves for future gains. So far, some market observers consider bitcoin's pullback necessary and perceive the drop as a positive move.
btc could see a 20% drop this time
Martínez is not the only expert who has predicted a decline in the short term. crypto Jelle also has shared his negative forecast for btc, which points to a 20% price correction.
Jelle noted that btc is moving towards its its highest point of $69,000, “there will be falls along the way.” He further stated that this “time,” it looks like btc could decline by 20%.
The cryptanalyst has therefore urged not to be impressed by the result and told them to “take advantage” of the development when it occurs. This is because Jelle believes that the key to success in the crypto space is patience.
Currently, the price of bitcoin is down more than 2% in the last 24 hours, trading slightly above $66,000. Despite the price drop, its trading volume increased by more than 37%, while its market capitalization decreased by 2%.
Featured image from iStock, chart from Tradingview.com
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.
