Key Notes
- Crypto analyst Ali Martinez warned that BTC has lost key support levels opening gates for $70,000 levels.
- BitMEX co-founder Arthur Hayes projected a retracement to $70,000-$75,000 if US budget uncertainty persists.
- Adding to the bearish sentiment, spot Bitcoin ETFs saw significant outflows, totaling $937 million on Tuesday.
Bitcoin price BTC $89 139 24h volatility: 1.1% Market cap: $1.77 T Vol. 24h: $68.60 B continues to face strong selling pressure, correcting an additional 4% and dropping to $88,588 with a market cap of $1.756 trillion. Market analysts show that the world’s largest cryptocurrency is showing a top-formation pattern similar to 2021. Thus, it increases the chances of an additional 10-20% BTC correction from here.
Bitcoin Price Shows 2021 Market Top Patterns
Crypto analyst Ali Martinez pointed out the parallels between the current Bitcoin price action and the market top observed in 2021. He also noted that if the pattern remains consistent, BTC could experience a consolidation phase at the current level before experiencing any other downward move.
The analysis suggests caution for traders as Bitcoin faces potential headwinds in the short term, similar to historical trends.
Source: Ali charts
Furthermore, the market analyst has also warned that BTC has been losing all crucial support levels, and could potentially see a freefall all the way to $70,000 levels. Martinez noted that the next critical support for Bitcoin is at $93,198.
He also cautioned that if BTC falls under this threshold, it could encounter an “air gap” with minimal support, potentially leading to a sharp decline toward $70,440. As of press time, Bitcoin price is already trading much under this support level with open interest dropping nearly 1.34% to $56.69 billion, as per CoinGlass data .
Source: Glassnode
Arthur Hayes Predicts Downturn amid Budget Uncertainty
BitMEX co-founder Arthur Hayes weighed in on Bitcoin’s (BTC) trajectory amid US political developments. Hayes suggested that Bitcoin could retrace to pre-election levels between $70,000 and $75,000 if former President Donald Trump fails to pass his budget proposal, which includes increased spending and a debt ceiling hike.
“This is a test of how strong Trump’s hold is on the Republican Party,” Hayes remarked. He also advised traders to “chill out, retrace, and wait” as the situation unfolds.
Additionally, outflows from spot Bitcoin ETF have also skyrocketed in recent days. On Tuesday, the net outflows from these US BTC ETF surged to $937 million, with Fidelity’s FBTC seeing the largest outflows at $344 million while BlackRock’s IBIT saw $164 million in net outflows, as per data from Farside Investors.
This shows that the market sentiment has dampened a lot amid macro uncertainties and a lack of catalyst in sight. Additionally, among the tight inflationary conditions, the Fed has been reluctant to announce rate cuts.
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