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The price of Bitcoin has been on a bearish trend for the past few days now, which has led to several crypto analysts predicting an even more bearish action for the crypto asset in the near future.
Bitcoin Price To Crash To $38,130
Ali Martinez, a well-known cryptocurrency analyst and enthusiast, has shared a worrying prediction for the short-term price action of Bitcoin. The analyst took to the social media platform X (formerly Twitter) a few hours ago to share his projections with the crypto community.
Martinez’s forecast came amidst the recent crash craze encompassing the entire crypto market. The largest crypto asset has been suffering with significant pullback for a while now, with pricing dropping below the $40,000 price mark.
BTC long and short-term on-chain cost basis | Source: Ali Martinez on X
According to the analyst, the latest decline in the price of Bitcoin can go below $38,130. Martinez stated that short-term holders of BTC would experience losses if prices go below the aforementioned price level.
He also noted that the price decline could cause a “panic selling” mode among short traders. As a result, these short sellers will look for methods to cut their losses.
The post read:
If Bitcoin’s price falls below $38,130, short-term BTC holders could find themselves in the red. This potential Bitcoin dip might trigger a new wave of panic selling as these holders will seek to minimize losses.
Nonetheless, Martinez has highlighted that the bearish shift is just temporary, predicting that the BTC bull cycle will peak in late 2025. In the post, he asserted that Bitcoin’s current state is similar to previous bull runs that lasted from “2015-2018 and 2018-2022.” After that, he mentioned that market estimates suggest that BTC could reach a new peak by October 2025.
With his analysis, Martinez has forecasted a “600 days bullish momentum” for Bitcoin, presenting future profits for investors in the long term.
Historical Trends Prove Further Correction In Price
Chief Market Strategist at Creative Planning Investor, Charlie Bilelo has noted that historical trends suggest more price correction. According to the chief, “History does not repeat itself, however it often rhymes.”
Bilelo underscored, that whenever there is a significant event in the history of BTC, there are always notable price corrections. He emphasized BTC witnessed an 84% pullback after the December 2017 bull run.
He highlighted a similar scenario that took place in October 2021 bull run. Then the rally began after the approval of BTC futures ETF and saw a 78% retracement afterwards.
This pattern appears to be partially manifesting as evidenced by the spike in BTC’s price earlier this year due to BTC Spot ETF approval. Bilelo has pointed out a “20% pullback” so far since the products were allowed by the SEC.
As of the time of writing, the asset’s price is sitting at $40,088, indicating an over 5% decline in the past week. Data from CoinMarketCap shows that its market cap and trading volume are also down by 0.35% and 31% respectively.
Featured image from iStock, chart from Tradingview.com
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