The price of Bitcoin witnessed a pullback on Tuesday amid a general bearish sentiment around the crypto market, after the digital asset reached the $69,000 threshold.
Bitcoin Might Undergo Further Correction
Following the correction, several predictions of a further decline in the price of Bitcoin from top crypto analysts have surfassed. Cryptocurrency analyst and trader Ali Martinez has highlighted a few indicators that suggest a continuous retracement in price.
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Martinez took to the social media platform X (formerly Twitter) to share his projections with the crypto community. According to Ali Martinez, on the daily chart of Bitcoin, the Tom DeMark (TD) Sequential indicator presently “flashed a sell signal.”
The crypto analyst believes that this development deserves to be closely monitored. This is because the indicator “boasts a solid history of predicting Bitcoin trends” since the beginning of the year.
He further pointed out that the indicator suggested a buy signal earlier in January, which was followed by a 34% rise in Bitcoin’s price. In addition, in the middle of last month, the indicator also suggested a sell signal, after which Bitcoin plummeted by over 4%.
With the TD Sequential presently developing a sell signal, BTC might be poised to undergo a correction in the short term. However, there is no guarantee that the price of BTC will see a correction following the signal.
Martinez also underscored the accuracy of the pointer in predicting BTC’s price movement, which he believes to be “remarkably insane.” In a previous projection, Martinez asserted that BTC has declined by “1.5% to 4.7%, each time the indicator recommends a selling” since February 15.
As a result, short-term traders should carefully observe the trend in order to position themselves for future gains. So far, some market watchers feel that Bitcoin’s retracement was necessary, and they perceive the fall as a positive move.
BTC Could See A 20% Drop This Time Around
Martinez is not the only expert that has predicted a pullback in the short term. Crypto Jelle has also shared his negative forecast for BTC, pointing to a 20% price correction.
Related Reading: Bitcoin Crossroads: Analyst Identifies Level Set To Determine Next Move
Jelle noted as BTC moves towards its all-time high of $69,000, “there will be downturns along the way.” He further stated that this “time around,” it seems BTC might decline by 20%.
Thus, the crypto analyst has urged not to be shaken by the outcome while telling them to “take advantage” of the development when it occurs. This is because Jelle believes that the key to making it in the crypto space is patience.
Currently, the price of Bitcoin is down by over 2% in the last 24 hours, trading slightly above $66,000. Despite the price drop, its trading volume is up by over 37%, while its market cap is down by 2%.
Featured image from iStock, chart from Tradingview.com
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