A closely followed crypto analyst has warned that if a historical model repeats itself, Bitcoin (BTC), the leading cryptocurrency, could witness a deep correction movement.
Historical Data in BTC!
Trader Ali Martinez, through social media platform X, indicated that Bitcoin tends to undergo a significant pullback after recovering from a bear market. According to Ali Martinez, Bitcoin followed the same pattern after igniting major rallies in 2016 and 2019. The expert stated:
After finding the market bottom in 2016 and 2019, Bitcoin’s first major correction reached the 0.786 Fibonacci retracement level. Based on this model, if history repeats itself, BTC could climb towards $50,000 before experiencing a 40% correction.
According to the analyst, if the same model continues, a 40% correction from the $50,000 level could lead Bitcoin to drop to $30,000. At the time of writing, Bitcoin was trading at $42,281.
Bull Run in BTC
While Ali Martinez raises the alarm about a possible major correction for Bitcoin, the top cryptocurrency by market value continues its long-term ascent. Martinez suggests that based on the BTC halving cycle, the Bitcoin bull market could continue until the end of 2025. The halving event, which cuts BTC miners’ rewards in half, is scheduled to occur in April 2024. Consequently, the analyst posits that this correction could happen before reaching $50,000 if the current rally continues, but he also believes that based on the halving cycle, the Bitcoin bull market could persist until the end of 2025. Additionally, the event has also coincided with past Bitcoin bull markets. Martinez stated in his remarks:
Bitcoin is typically designed around four-year cycles that reflect the impact of halving events on price movement. Historically, this means a three-year upward trend followed by a one-year corrective downturn. According to this cycle, BTC is in an upward phase and could potentially extend until December 2025!
