Bitcoin rose above $40,000 again today, after its retreat to $38,000 yesterday.
While BTC still continues to show weakness, popular cryptocurrency analyst Ali Martinez said that the weekly close and the $38,000 level in Bitcoin are important.
At this point, Martinez said that a close below $38,000 on the weekly chart could be indicative of another possible decline for Bitcoin.
According to the analyst, if there is a weekly close below $38,000, the next target for BTC could be the strong support level around $33,000.
Stating that the critical support level of $ 33,000 is the 0.5 Fibonacci retracement level and the 50-week simple moving average, Martinez said that this level creates a remarkable defense line that has the potential to prevent further declines in the BTC price.
“A close below $38,000 on the weekly chart could signal a pullback for BTC, targeting the strong support level around $33,000.
This key area at $33,000 combines several technical elements: This level appears as the 0.5 Fibonacci retracement level and the 50-week simple moving average.
“Together, these factors form an important line of defense that could potentially stop further BTC price declines.”
🚨 #Bitcoin Price Watch: A close below $38,000 on the weekly chart could signal a downturn for $BTC, targeting the strong support cluster around $33,000.
This key area combines several technical elements: the lower boundary of a parallel channel, the 0.5 Fibonacci retracement… pic.twitter.com/uaKmtMjdeQ
— Ali (@ali_charts) January 24, 2024
In another post, Martinez pointed out that Bitcoin made four important corrections during the rise, and that this correction was a good opportunity to buy the bottom and advised investors to buy BTC.
“In this bull market, BTC experienced 4 significant corrections: a 12% decline in 12 days, a 22.6% decline in 15 days, and two declines of approximately 21% each lasting approximately 60 days.
Interestingly, Bitcoin is currently in the middle of a 21% correction that has been going on for 12 days. So buy the dip.”
In this bull market, $BTC has experienced 4 notable corrections: a 12% drop over 12 days, a 22.6% fall over 15 days, and two approximately 21% dips each lasting about 60 days.
Interestingly, #Bitcoin is currently in the midst of a 21% correction, which has been ongoing for 12… pic.twitter.com/9KUFG0nppa
— Ali (@ali_charts) January 24, 2024
*This is not investment advice.
