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.”
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.”
*This is not investment advice.