The pioneering cryptocurrency, bitcoin, has struggled to stay above the $43,000 price mark over the past few weeks. The last seven days have not been much different for the cryptocurrency, which is currently trading below $42,000.
However, a popular crypto analyst on the X platform has presented an interesting trajectory for the btc price in the coming weeks. According to his projection, investors could see the market leader trade above the psychological level of $50,000, but there is a caveat.
btc price at $50,000, but what happens after?
in a recent post on X, prominent cryptocurrency trader Ali Martinez presented a price prediction, stating that the value of bitcoin could rise as high as $50,000 in the near future. The analyst arrived at this projection after identifying and studying a historical pattern in the price chart of the coin on a higher time frame.
Martinez's prediction is based on btc price action between 2016 and 2019 on the weekly chart. According to the crypto analyst's post, the leading cryptocurrency witnessed a major price correction, after bottoming out in the market, when it touched the 0.786 Fibonacci retracement level.
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A weekly chart showing bitcoin's price movement between 2016 -2023 | Source: Ali_charts/X
Martínez believes that the current price action reflects the bitcoin pattern seen in the latter years of the previous decade. Historical price patterns can be useful in technical analysis and predicting the future trajectory of a cryptocurrency.
If this story repeats itself on the bitcoin price chart, investors could see the value of btc rise towards $50,000. However, Ali Martínez noted that the flagship cryptocurrency could later fall by a significant 40%.
From the current price, bitcoin's trip to $50,000 would mean an upward swing of almost 20%. Meanwhile, a 40% drop right after this surge could see the top cryptocurrency return to around $30,000.
bitcoin Price Overview
At the time of writing, the value of bitcoin stands at $41,831, representing a 1.5% price drop in the last 24 hours. This recent drop only further reflects the bearish pressure that the market leader had to face last week.
According bitcoin” target=”_blank” rel=”nofollow”>CoinGecko data, the price of bitcoin is down almost 4% in the last seven days. However, the cryptocurrency has had a fairly successful December, having risen approximately 10% in the last month of 2023.
btc has had one of the best price performances this year, rising an astonishing 150% since January. Consequently, bitcoin retains its place as the largest cryptocurrency in the sector, with a market capitalization of approximately $823 billion.
<img loading="lazy" decoding="async" class="aligncenter size-medium" src="https://technicalterrence.com/wp-content/uploads/2023/12/This-Historical-Bitcoin-Pattern-Could-Send-Price-to-50000-Before" alt="bitcoin” width=”2174″ height=”1434″/>
bitcoin price continues to move sideways on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
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