In the past week, Bitcoin has witnessed an impressive surge in price, surpassing $50,000 for the first time in years. While the cryptocurrency has been consolidating around the $51,000 mark recently, a renowned crypto analyst has raised concerns about a potential bearish trend in the near future. Ali Martinez, a prominent figure on the X platform, has sounded the alarm based on the Tom Demark Sequential indicator.
Martinez’s analysis is founded on the distribution of holders’ cost basis across various price zones of Bitcoin. By using on-chain indicators, he pointed out a significant resistance zone between $51,099 and $52,582. According to his assessment, failure to break above $52,000 could lead to an 8% correction in the price, potentially dropping to the $48,000 and $46,500 range.
Despite the potential bearish pressure forecasted by Martinez, Bitcoin has managed to hold onto its recent gains. With a value of around $51,650 at the time of writing, the cryptocurrency has only seen a slight dip of approximately 0.9% in the last 24 hours. It is noteworthy that Bitcoin has performed remarkably well over the past week, posting an 8% increase, and showing over 20% growth in the current month.
The recent price surge has propelled Bitcoin’s market capitalization above $1 trillion, reaffirming its dominance as the leading asset in the cryptocurrency market. This significant milestone showcases the resilience and strength of Bitcoin as it continues to attract investors and solidify its position in the digital asset space.
It is crucial to note that the information provided in this analysis is for educational purposes only. It is not a recommendation to buy, sell, or hold any investments. Investing in cryptocurrencies carries inherent risks, and individuals are advised to conduct thorough research before making any financial decisions. The content presented should be used responsibly and at one’s own discretion.