bitcoin had a surprisingly disappointing price performance over the past week despite the US Securities and Exchange Commission (SEC) approving btc spot ETF trading. The price of the flagship cryptocurrency nearly broke $49,000 at the height of this positive news, but has since retreated below $43,000.
Ali Martinez, a popular crypto analyst on platform
Analyst predicts 20% price drop for btc
In a recent publish in X, the crypto expert shared an update of his analysis of the bitcoin price chart in the three-day period. On January 4, Martínez initially identified an ascending parallel channel, which appears to be governing bitcoin price action since September 2023.
In price analysis, an ascending parallel channel is a technical analysis pattern that features two parallel upward-sloping trend lines. While it is primarily a bullish chart pattern, the ascending parallel channel can indicate a short-term bearish move or even a trend reversal.
<img decoding="async" class="aligncenter wp-image-569464 size-large" src="https://technicalterrence.com/wp-content/uploads/2024/01/Bitcoin-at-34000-Analyst-Predicts-BTC39s-Next-Move-With-This.jpeg" alt="bitcoin” width=”860″ height=”570″ srcset=”https://www.newsbtc.com/wp-content/uploads/2024/01/GDt0h5EWkAA-WxN.jpeg?w=1200 1200w, https://www.newsbtc.com/wp-content/uploads/2024/01/GDt0h5EWkAA-WxN.jpeg?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/01/GDt0h5EWkAA-WxN.jpeg?w=768 768w, https://technicalterrence.com/wp-content/uploads/2024/01/Bitcoin-at-34000-Analyst-Predicts-BTC39s-Next-Move-With-This.jpeg 860w, https://www.newsbtc.com/wp-content/uploads/2024/01/GDt0h5EWkAA-WxN.jpeg?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2024/01/GDt0h5EWkAA-WxN.jpeg?w=1140 1140w” sizes=”(max-width: 860px) 100vw, 860px” loading=”lazy” data-recalc-dims=”1″/>
btc price in an ascending parallel channel on the three-day timeframe | Source: Ali_charts/X
Martinez noted in his post that the current setup seems to hold true after bitcoin price faced rejection from the parallel channel upper boundary at $48,000. Following this price correction, the analyst has predicted $34,000 at the lower boundary of the channel as the next natural stop for the leading cryptocurrency.
A move lower to $34,000 would represent a significant 20% drop from the current price of bitcoin. However, according to Martínez's analysis, the outlook may not be so bleak for the world's largest cryptocurrency.
The positive side is that the analyst expects a quick recovery in bitcoin price after the downward spiral to $34,000. Martinez said the pioneering crypto could rally to the upper limit of $57,000.
bitcoin Price Overview
At press time, the price of bitcoin stands at $42,909, reflecting a negligible drop of 0.6% in the last 24 hours. The leading cryptocurrency has struggled to stay above $43,000 since experiencing a massive drop to below $42,000 on Friday.
Meanwhile, btc's gains since the beginning of the year have slowed to just 1.6%, casting doubt on the coin's bullish future. bitcoin is down almost 3% in the weekly period, according to data from CoinGecko.
However, btc maintains its position as the largest asset in the cryptocurrency sector, with a market capitalization of approximately $841 billion.
bitcoin price hovers around $43,000 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.
