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Cryptocurrency markets are on the edge as Bitcoin (BTC) whales, major holders of the flagship cryptocurrency, have reportedly sold a massive 70,000 BTC over the past fortnight, equivalent to a staggering $3 billion. The unsettling revelation surfaced via a tweet from prominent cryptocurrency analyst and trader Ali Martinez, who sounded the alarm over the substantial whale activity.
This disclosure has sent ripples of concern throughout the crypto community, raising questions about the potential impact on Bitcoin’s price trajectory. However, adding a layer of technical analysis to the unfolding situation, Martinez posted another tweet drawing parallels with Bitcoin’s historical market cycles.
According to his observations, Bitcoin tends to retrace to the 50% Fibonacci level after reaching the 78.6% Fibonacci level in previous bull cycles. Significantly, Bitcoin has recently touched the 78.6% Fibonacci level once again, signaling a potential correction in the offing.
Another BTC price drop?
Ali Martinez’s analysis suggests a plausible scenario where Bitcoin could drop to $32,700, aligning with the 50% Fibonacci retracement. This projection has prompted market participants to brace for a significant downturn, introducing a sense of unease among traders and investors.
As of the latest market data, Bitcoin is currently priced at $38,849. The cryptocurrency has experienced a 4.72% decline in the last 24 hours and a notable 9.34% decrease over the past seven days. The recent dip in value compounds the growing apprehension within the market.
Adding to the complexity of the situation, data from Coinglass reveals a considerable surge in Bitcoin liquidations over the past 24 hours. Total liquidations stand at $92.84 million, with long liquidations accounting for $79.98 million and short liquidations at $12.86 million. This uptick in liquidations underscores the heightened volatility and uncertainty currently prevalent on the market.
Market observers are now closely monitoring Bitcoin’s price movements and broader market dynamics, speculating on whether the cryptocurrency will conform to historical patterns or if external factors will disrupt the anticipated correction. The prevailing sentiment advises investors to exercise caution and maintain vigilance in navigating the evolving cryptocurrency landscape.
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