Amid the latest hints of recovery, Bitcoin’s (BTC) price is not in the clear with whale selloffs hinting at further drawdowns.
Top market analyst Ali Martinez has hinted at the conditions that might make Bitcoin drop as low as $33,000.
He posited that if Bitcoin continues to lose its footing and drop below the $38,000 support level, a correction toward the next major support at $33,000 might be inevitable.
Bitcoin dropped as low as $38,521.89 in the past week with its price recording a 5.58% slump. At the time of writing, the cryptocurrency has recovered, reclaiming the $40,000 resistance to peg its price at $40,196.
While the coin’s market capitalization is up 3.48% to $788,455,247,888, the trading volume is down by 15.63% to $26,762,736,520.
Technical Insights From Ali Martinez
The analyst noted that a breach of the $38,000 level will see Bitcoin targeting the strong support cluster at $33,000.
This projection aligns with a prior call from BitMEX co-founder and former CEO, Arthur Hayes who pointed out a potential 30% to 40% correction in the coin’s price in its search for stability.
Ali Martinez revealed on-chain data that shows Bitcoin whales have sold up to 70,000 BTC over the past two weeks, with a market value worth around $3 billion. If this enormous selloff continues, Bitcoin price may see further bearish headwinds ahead.
Ali, however, pointed out a glimpse of hope should Bitcoin fall to the $33,000 level. He noted that this level has many “technical elements: the lower boundary of a parallel channel, the 0.5 Fibonacci retracement level, and the 50-week simple moving average.”
? #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
The combination of these elements, according to him, can halt further price slumps and possibly reset the growth course of the coin.
Bitcoin Halving Sentiment
Bitcoin has received a lot of battering since the start of the year. However, it has remained resilient, maintaining a 75.60% growth Year-on-Year (YoY).
While the spot Bitcoin ETF trend is not impacting the price of the coin positively at this time, market stakeholders anticipate the forthcoming BTC Halving event and the bullish sentiment it might probably come with.
As a deflationary event, experts have projected it will help push the price of Bitcoin to new heights in the mid-to-long term.