The world’s largest cryptocurrency Bitcoin (BTC) sees selling pressure with the BTC price dropping another 1.5% to $39,677 as of press time. Some of the on-chain indicators suggest that the BTC price could drop another 10-15 % from here onwards.
BitMEX CEO Takes Defensive Measure on Bitcoin
In a recent statement, BitMEX CEO Arthur Hayes shared his insights on the Bitcoin market, projecting a potential 30% decline from the high of $48,000 reached following ETF approval. Hayes believes that the cryptocurrency could find support within the range of $30,000 to $35,000.
Taking a cautious approach, Hayes disclosed that he acquired 29 March 2024 $35,000 strike puts, expressing his readiness for a possible downturn in the market. Additionally, he revealed the strategic move of liquidating his trading positions in Solana and Bonk at a marginal loss.
In the event that Bitcoin drops below the $35,000 threshold, Hayes outlined his plan to engage in opportunistic buying, particularly focusing on accumulating positions in Solana and $WIF.
Hayes expressed a bearish sentiment regarding Bitcoin’s current outlook, stating that it appears “mad heavy,” and he anticipates a breach of the $40,000 level. His strategic move of going long on a $35,000 strike puts for March 29, 2024, aligns with his expectation of a market downturn, which he correlates with the US Treasury quarterly refunding announcement scheduled for January 31, 2024.
BTC On-chain Data
In a recent analysis, prominent crypto analyst Ali Martinez delved into historical trends in Bitcoin (BTC) price movements, specifically focusing on patterns observed during previous bull cycles.
Martinez highlighted a recurrent behavior where Bitcoin tends to retrace to the 50% Fibonacci level after hitting the 78.6% Fibonacci level in the aftermath of the last two bull cycles. Drawing parallels to the current market scenario, BTC has once again reached the 78.6% Fibonacci level, signaling a potential correction in the near term. According to this pattern, Martinez suggests a plausible scenario where Bitcoin could experience a drop to $32,700, aligning with the 50% Fibonacci retracement level.
Expanding on the broader sentiment cycle for Bitcoin, Martinez outlined the historical transitions from capitulation to hope, optimism, and belief. Following this cycle, a phase of anxiety typically ensues, characterized by a price correction. Notably, the analysis points to the ongoing 20% correction in BTC as part of this recurring pattern.
While acknowledging the current setback, Martinez remains optimistic, drawing parallels with historical trends. If history serves as a guide, the observed correction could be a temporary hurdle before the resumption of the overall uptrend in Bitcoin’s price.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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