Bitcoin Price Drops 1.5% as On-Chain Indicators Signal Further Decline
The price of Bitcoin (BTC), the world’s largest cryptocurrency, has dropped by another 1.5% to $39,677, leading to selling pressure in the market. On-chain indicators are suggesting that the BTC price could potentially drop by another 10-15% from its current level.
BitMEX CEO Takes Defensive Measure on Bitcoin
Arthur Hayes, the CEO of BitMEX, has provided his insights on the Bitcoin market, projecting a potential 30% decline from its recent high of $48,000. Hayes believes that Bitcoin could find support within the range of $30,000 to $35,000. As a defensive measure, Hayes has acquired 29 March 2024 $35,000 strike puts and liquidated his trading positions in Solana and Bonk.
BTC On-chain Data Suggests Potential Correction
Crypto analyst Ali Martinez has analyzed historical trends in Bitcoin price movements, specifically focusing on patterns observed during previous bull cycles. Martinez points out a recurring behavior where Bitcoin retraces to the 50% Fibonacci level after reaching the 78.6% Fibonacci level. Based on this pattern, Martinez suggests a plausible scenario where Bitcoin could experience a drop to $32,700, aligning with the 50% Fibonacci retracement level.
Historical Trends Provide Optimism Amid Setback
Martinez expands on the broader sentiment cycle for Bitcoin, highlighting the transitions from capitulation to hope, optimism, and belief. Following this cycle, a phase of anxiety typically occurs, characterized by a price correction. The current 20% correction in BTC is seen as part of this recurring pattern. Despite the setback, Martinez remains optimistic, drawing parallels with historical trends and suggesting that the correction could be temporary before the resumption of the overall uptrend in Bitcoin’s price.
Analyst comment
Negative news: Bitcoin price drops another 1.5% and on-chain indicators signal a further decline. BitMEX CEO projects a potential 30% decline. BTC on-chain data suggests a potential correction. However, historical trends provide optimism amid the setback, suggesting the correction could be temporary before the resumption of the overall uptrend. As an analyst, the market is expected to experience a short-term decline but may resume the upward trend in the future.
