Recent drastic fluctuations in the Bitcoin market have severely shaken investor confidence. Beginning in early October, the downward trend accelerated sharply last week, causing Bitcoin prices to plummet to $81,000. This is noted as the lowest recorded price since December. While reports suggest some major investors, known as “whales,” are buying again, not everyone views this optimistically. Notably, popular crypto analyst Ali Martinez has presented an alarming scenario, arguing that Bitcoin has not yet hit its lowest.
Analyst’s Striking Prediction: “Sell Everything and Buy Here”
According to Ali Martinez, downward risks remain in Bitcoin’s chart. Using a three-day chart shared on the X platform, the analyst pinpointed Bitcoin’s ultimate buying target at $45,163. Martinez stated that he would “sell everything and enter Bitcoin” should this level be reached, making the prevailing pessimism in the market even more evident.
In addition, Martinez outlined intermediate support levels to watch if the decline continues. The first significant support level is around $76,000. If breached, the focus shifts to $56,200, followed by the $53,000 range. According to the analyst, these regions are crucial for the market’s psychological balance. However, losing these supports could trigger a more severe correction wave for Bitcoin.
Global Tensions and ETF Withdrawals Increase Pressure
The recent Bitcoin slump isn’t driven solely by technical factors. Increasing geopolitical tensions have also diminished risk appetite. Particularly, the intensifying conflict between the U.S. and Iran has taken a new dimension, with the U.S. President ordering a massive naval fleet to the Middle East. This development has increased the search for safe havens in global markets, accelerating withdrawals from risky assets like crypto.
Furthermore, the U.S. Federal Reserve’s decision to pause interest rate cuts has added another layer of pressure on Bitcoin. Prolonged high-interest rates weaken demand for risky assets. This phenomenon is most apparent in the massive outflows from spot Bitcoin ETFs. In just the past week, approximately $1.5 billion has been withdrawn from these funds, with over $800 million exiting on Thursday alone—the worst day recently. Net inflows have declined to $55 billion, noting a significant $3 billion erosion since mid-January.
Reports of similar pressure emerging in Ethereum ETFs suggest a broader cautious sentiment strengthening in the crypto market.
