Bitcoin (BTC) Price Close Under $38,000 Can Trigger Another 15-20% Correction

Bitcoin (BTC) seems to be showing some weakness recently with the BTC price dropping 7% and slipping under $40,000. As of press time, Bitcoin is trading at $39,866 with a market cap of $782 billion.

Key Bitcoin Price Levels to Watch

In a recent analysis, crypto analyst Ali Martinez highlights a crucial level to monitor for Bitcoin’s price trajectory. According to Martinez, a close below $38,000 on the weekly chart could serve as an indication of a possible downturn for Bitcoin ($BTC), with the next target being the robust support cluster around $33,000.

Courtesy: Ali Martinez

This critical support area amalgamates several essential technical elements, including the lower boundary of a parallel channel, the 0.5 Fibonacci retracement level, and the 50-week simple moving average. The convergence of these factors establishes a formidable line of defense that has the potential to impede further declines in Bitcoin’s price, providing a key level for market participants to observe closely.

Furthermore, Ali Martinez delves into historical trends observed in the last two Bitcoin ($BTC) bull cycles. Martinez notes that during these previous cycles, Bitcoin often retraced to the 50% Fibonacci level after reaching the 78.6% Fibonacci level.

Courtesy: Ali Martinez

Drawing parallels to these historical patterns, Martinez observes that Bitcoin price has recently touched the 78.6% Fibonacci level again, hinting at a potential correction. If the historical pattern persists, Martinez suggests that Bitcoin price could experience a drop to $32,700, aligning with the 50% Fibonacci retracement level.

Grayscale Moves Massive Bitcoins to Coinbase

Massive selling of Bitcoins by Grayscale has continued since the ETF approval amid the strong sell-off in the GBTC shares. In a significant move reported by Arkham, Grayscale executed a substantial transfer of 17,140 Bitcoins, equivalent to approximately US$660 million. The transaction took place at 22:17 UTC+8, with the funds being moved to Coinbase Prime Deposit.

Competition among spot Bitcoin ETF issuers has intensified as Grayscale escalates its marketing efforts across various media channels, including television and posters. Grayscale has strategically placed posters promoting its Bitcoin ETF at prominent locations, notably at the “30th St Station in Philly,” as part of its comprehensive marketing campaign.

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