Categories: MarketsMenafn

Analyst Predicts Bitcoin Crash to $38,130

As of Jan. 26, Bitcoin (BTC) has experienced a notable decline, slipping below the $40,000 mark before a partial recovery. Despite the rebound, BTC remains 19% below its post-Spot Bitcoin ETF approval high.

Crypto analyst Ali Martinez has warned of a further dip to $38,130. He predicts that such a downturn could trigger panic selling among short-term investors. He notes that breaching this threshold would result in losses for short-term BTC holders, leading to a new wave of panic selling.

Bitcoin (BTC) Future Trend

While the crypto analyst acknowledges the current bearish turn, he expects the Bitcoin bull cycle to peak in late 2025. Comparing historical patterns, he suggests that BTC is mirroring previous bull runs, with market projections indicating a potential peak in Oct. 2025. 

https://twitter.com/ali_charts/status/1750412686591225924?ref_src=twsrc%5Etfw” target=”_blank” rel=”noopener

He reassures long-term Bitcoin HODLers of approximately 600 more days of bullish momentum before the cycle tops. Emphasizing the historical pattern of BTC price corrections followed by upswings, the analyst advises traders to leverage the “buy the dip” opportunity for potential gains.

Currently trading around $39,850, BTC struggles to sustain above $40,000, facing pullbacks after attempted rebounds. Despite a 0.25% increase at press time, the 24-hour trade volume plummeted 29.57% to $20.09 billion. The market cap sits at $786.18 billion.

BTCUSD 1-Day Chart

The crypto analyst highlights the significance of the $38,000 threshold on the weekly chart, cautioning that a close below this level may signal a potential downturn targeting strong support around $33,000. 

This critical zone is defined by key technical indicators, forming a significant defense line against further price declines. Based on the current analysis, the analyst concludes that a drop below $32,000 is not imminent.

Jerry Rolon

After working for 7 years as a Internet Marketer, Jerry now aims to explore the journalistic side of Internet. With his impeccable knowledge in this domain, he churns out some of the best news articles from the internet niche. With respect to acedamics, Jerry earned a degree in business from California State University.

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