Cryptocurrency analyst and trader Ali Martinez is cautioning that Bitcoin (BTC) may experience a decline of double-digit percentage points if it fails to maintain support at a critical price level.
Martinez, addressing his 132,100 followers on the platform X, mentions that Bitcoin has approached the support level of the 50-week moving average, a threshold that, when breached, has historically resulted in significant corrections.
Martinez indicates that Bitcoin might plunge by 44% from its current price if it falls below the 50-week moving average.
“Currently, the 50-week moving average stands at $75,500. A breach of this support could lead Bitcoin to the 200-week moving average around $46,000.”
The crypto analyst states that the 50-week moving average serves as the “ultimate bear signal” for Bitcoin, highlighting at least four occasions where BTC tested this average and faced considerable losses.
“Historically, when Bitcoin dips below the 50-week moving average, it often tests the 200-week moving average. For example, in 2014, Bitcoin fell below the 50-week moving average and dropped to the 200-week moving average.”
“The same scenario occurred in 2018. Following a drop below the 50-week moving average, Bitcoin subsequently tested the 200-week average.”
“Even during the Covid crash in 2020, Bitcoin fell below the 50-week moving average and reached the 200-week moving average.”
“In 2022, the correction was even more severe, with Bitcoin dropping below the 200-week moving average.”
As of now, Bitcoin is trading at $84,771.
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