Top Analyst Expects 30% Correction to Be Extremely Bullish
Bitcoin (BTC), the world’s largest cryptocurrency, attracted attention today due to its massive price collapse. Bitcoin price fell below $66,000 after remaining above $69,000 for days. This increased concerns that prices could fall even further. However, one crypto analyst believes that a 30% correction in BTC price could be extremely bullish.
Is a 30% Correction in Bitcoin Price Really Bullish?
Ali Martinez, one of X’s famous crypto analysts, made a bold statement regarding the Bitcoin price correction. “A 30% price correction is the most bullish thing that could happen to #Bitcoin,” he wrote in a post on X.
When netizens questioned the analyst about such a comment on the BTC price trend, Martinez stated that liquidity will play an important role. The crypto analyst noted that a 30% Bitcoin price correction would help “market makers capture liquidity.” This will eventually push the value of BTC to an all-time high.
Moreover, in another X-related post, Martinez highlighted a crucial level for the Bitcoin price recovery. Martinez is closely monitoring the critical support level on the 200 Exponential Moving Average (EMA), the four-hour chart. Since the beginning of February, this level has proven to be a formidable barrier against further downside for BTC.
Additionally, Martinez emphasized the importance of this level and stated that the ability to hold this level could pave the way for a significant recovery in Bitcoin price. However, a drop below support, such as what occurred in mid-January, could mean further losses for the Bitcoin price.
Although this could lead to a major correction in BTC price, it could also lead to an uptrend in the long run. The pullback would provide a better entry point for new investors and lead to an influx of liquidity in line with Martinez’s prediction.
Also Read: Peter Schiff Warns of Bitcoin’s ‘Bigger’ Drop in Dire Warning
Collapse in BTC Price Today
At the time of writing, the Bitcoin price fell 5.66% to $65,776.07 on Tuesday, April 1. Meanwhile, the market cap of crypto was $1.29 trillion. On the contrary, BTC’s trading volume increased by 74.04% to $45.68 billion in the last 24 hours.
The recent pullback in BTC can be attributed to the massive long liquidations recorded today. According to Coinglass, longs accounted for $108.78 million in liquidations out of a total liquidation of $149.54 million. Meanwhile, short investors took advantage of the opportunity to make profits.
QCP Capital recently highlighted the options market’s early signs of an impending downturn, particularly the downward trend in risk reversals. Both Bitcoin and Ethereum options continued to experience increased volatility, with selling pressure increasing amid weakening sentiment.
The flash crash was precipitated by significant liquidations on crypto exchanges frequented by retail investors. At Binance, where persistent funding rates have fallen from a peak of 77% to neutral levels. Additionally, this has brought spot prices back to the risk levels observed around $63,000 in mid-March. Additionally, declining trading volumes indicate further declines in prices may be on the horizon.
Also Read: Bitcoin ETF Flows Turn Negative as Second Quarter Begins, Is the Halving Excitement Over?
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