Analyst names the price of bitcoin that will encourage investors to sell tokens

In the ever-volatile world of cryptocurrencies, the recent correction in the price of bitcoin has caught the attention of many analysts. Ali Martinez, known on Platform X as Ali_charts, shared his thoughts on the current scenario and potential reversal in a recent series of tweets.

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

Martinez, who has previously published accurate analyzes in the crypto space, pointed to the historical context of bitcoin’s correction during this bull market. The analyst noted that BTC $76,049.97 Bitcoin 0.91% Market capitalization $1.5 trillion VOL. 24 hours $3.38 billion has experienced four significant corrections, including a 12% drop in 12 days, a 22.6% drop in 15 days, and two drops of about 21%, each lasting about 60 days.

If #Bitcoin's price falls below $ 38,130, short-term $BTC holders could find themselves in the red. This potential #BTC dip might trigger a new wave of panic selling as these holders will seek to minimize losses. pic.twitter.com/TnAH67DPV6

— Ali (@ali_charts) January 25, 2024

Interestingly, Martinez emphasized that bitcoin is currently in the midst of a 21% correction that has been going on for the past 12 days, which is causing a «buy the dip» trend. According to Martinez, if the market leader falls below $ 38,130, short-term holders of the asset will try to minimize losses by selling tokens.

According to the expert, a close below $ 38,000 on the weekly chart could indicate a potential decline for BTC, with an emphasis on a strong support cluster around $ 33,000. He also explained that this support cluster is a combination of several technical elements.

As for institutional investors, online metrics indicate growing activity on their part, as they have begun to buy bitcoin en masse amid the flagship crypto asset’s slump.