Bitcoin's recent price movements have sparked discussions among analysts about the potential onset of a bear market. Renowned analyst Ali Martinez shared an in-depth analysis of Bitcoin's trend using various technical indicators and on-chain data.
Key Indicators Signal Bearish Momentum
Ali Martinez highlighted that Bitcoin's current price action is characterized by a 'corrective phase,' often marked by declining or stabilizing prices after a strong rally. This view is supported by the negative MVRV (Market Value to Realized Value) ratio. Also, large investor activity, including miners and 'whales,' indicates possible weakening momentum.
Can Bitcoin Hold Key Support Levels?
Despite bearish signals, Martinez identified crucial support levels that could stabilize Bitcoin's price. The $66,000-$69,000 range emerges as a vital zone where buyers might engage. According to Glassnode, strong support can be expected around $69,354, supported by the UTXO Realized Price Distribution data.
Possible Future Scenario for Bitcoin
Despite existing concerns, Bitcoin surged 4% to a 10-day high of $85,900 following the Federal Reserve's decision. Martinez points to global liquidity's potential influence: if Bitcoin can reclaim $93,700 as support, it may signal a resumed uptrend.
Although bearish sentiment prevails, certain key support levels might hold Bitcoin's price. The situation remains largely uncertain, and it is crucial to monitor changes in global liquidity and the market's response to significant support levels.
