Bitcoin (BTC), the world’s largest crypto, has caught attention today due to the massive price crash. The Bitcoin price slumped below $66,000 after days of sustaining above $69,000. This has sparked concerns regarding a further price slump. However, a crypto analyst believes that a 30% correction in the BTC price could be extremely bullish.
Is A 30% Correction In Bitcoin Price Really Bullish?
Ali Martinez, one of the renowned crypto analysts on X, made a bold statement regarding the Bitcoin price correction. In a post on X, he wrote, “A 30% price correction is the most bullish thing that could happen to #Bitcoin.”
When netizens questioned the analyst about such a comment on the BTC price trajectory, Martinez noted that liquidity will play a major role. The crypto analyst noted that a Bitcoin price correction of 30% will help “market makers grab liquidity.” This would eventually propel BTC’s value to a new all-time high.
Moreover, in another post on X, Martinez spotlighted a crucial level for the Bitcoin price rebound. Martinez is closely monitoring critical support level on the four-hour chart – the 200 Exponential Moving Average (EMA). Since early February, this level has proved to be a formidable barrier against further downward spirals for BTC.
In addition, Martinez emphasized the significance of this level, stating that its ability to hold could pave the way for a substantial rebound in Bitcoin’s price. However, a plunge lower than support, similar to what occurred in mid-January, could spell more losses for the Bitcoin price.
While it could lead to a massive correction in the BTC price, it could also be bullish in the long run. The pullback would provide a better entry point for new investors, leading to an influx of liquidity, aligning with Martinez’s prediction.
Also Read: Peter Schiff Warns “Bigger” Bitcoin Fall In a Dire Warning
BTC Price Crash Today
At press time, the Bitcoin price crashed 5.66% to $65,776.07 on Tuesday, April 1. Whilst, the crypto held a market capitalization of $1.29 trillion. On the contrary, the trading volume for BTC soared 74.04% to $45.68 billion in the last 24 hours.
The recent pullback in the BTC could be attributed to the gigantic long liquidations recorded today. According to Coinglass, longs accounted for $108.78 million liquidations of the total figure of $149.54 million. Meanwhile, short traders leveraged the opportunity to realize profits.
QCP Capital recently highlighted the options market’s early indications of a looming downturn, notably the downward skew in risk reversals. Both Bitcoin and Ethereum options have sustained elevated volatility, coupled with increasing selling pressure amidst waning sentiment.
The abrupt crash was expedited by substantial liquidations on crypto exchanges frequented by retail investors. On Binance, where perpetuals funding rates plummeted from a peak of 77% to neutral levels. Moreover, this has reset spot prices to the risk levels observed around $63,000 in mid-March. Furthermore, dwindling trading volumes suggest a potential further decline in prices on the horizon.
Also Read: Bitcoin ETF Flows Turn Negative As Q2 Begins, Halving Excitement Ends?
The post Top Analyst Expects A 30% Bitcoin Price Correction To Be Extremely Bullish appeared first on CoinGape.
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