A historical pattern suggests Bitcoin may witness a deep corrective move, warns crypto analyst
A closely followed crypto analyst is warning that Bitcoin (BTC) may witness a deep corrective move if a historical pattern plays out. Trader Ali Martinez tells his 38,700 followers on the social media platform X that Bitcoin tends to go through a significant pullback after recovering from a bear market.
Bitcoin tends to experience a significant pullback after recovering from a bear market, says trader
According to Martinez, Bitcoin followed the same pattern after igniting big rallies in 2016 and 2019. “In 2016 and 2019, after finding a market bottom, Bitcoin’s first major correction occurred upon reaching the 0.786 Fibonacci retracement level. Drawing from this pattern, if history repeats itself, BTC may climb further toward $50,000 before experiencing a 40% correction.”
Bitcoin’s past rallies in 2016 and 2019 followed the same pattern of a major correction
Should the same pattern play out, a 40% correction from the $50,000 level could see Bitcoin plunging toward $30,000. At the time of writing, Bitcoin is trading for $42,281. While Martinez is sounding the alarm over a possible major correction for Bitcoin, he remains long-term bullish on the top crypto asset by market cap. Martinez says he sees the Bitcoin bull market enduring until the end of 2025 based on BTC’s halving cycle.
A 40% correction from $50,000 could see Bitcoin dropping to $30,000, warns analyst
The halving, which cuts BTC miners’ rewards in half, is slated for April 2024. The event has also historically coincided with Bitcoin bull markets. “Bitcoin [is] designed around four-year cycles, driven by its halving events, which often mirrors its price action. Historically, this translates to three years of bullish trends followed by one year of bearish correction. As per this cycle, BTC is in an upward phase, potentially extending until December 2025!”
Despite warning of a correction, analyst remains bullish on Bitcoin’s long-term prospects
While the warning of a potential major correction may be concerning to some Bitcoin investors, it’s important to note that Martinez remains bullish on Bitcoin’s long-term prospects. He believes that the current bull market could continue until the end of 2025, based on BTC’s halving cycle and historical price patterns. Investors should always do their due diligence and consider market trends and historical patterns when making investment decisions.
Analyst comment
Positive news: The analyst warns of a potential deep corrective move in Bitcoin, suggesting a significant pullback after recovering from a bear market. However, the analyst remains bullish on Bitcoin’s long-term prospects and sees the current bull market enduring until the end of 2025 based on BTC’s halving cycle and historical patterns. It is important for investors to consider market trends and historical patterns when making investment decisions. However, the potential correction should be noted.
