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Bitcoin Could Correct To $56K If It Breaches This Support Level, Warns Analyst: 'First Sign Of A Rebound Will Be...'

Published 18/04/2024, 08:52
© Reuters.  Bitcoin Could Correct To $56K If It Breaches This Support Level, Warns Analyst: 'First Sign Of A Rebound Will Be...'
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Benzinga - Cryptocurrency analyst Ali Martinez has issued a warning about the critical $61,000 level for Bitcoin (CRYPTO: BTC).

What Happened: Martinez took to X on Thursday to highlight the significance of the $61,000 level for Bitcoin. According to Martinez, a breach of this level could trigger a correction to $56,200.

However, “if #Bitcoin can rebound, we could see an upswing to $66,500. The first sign of a rebound will be a sustained 4-hour candlestick close above $62,300. Until then, we brace for impact!” said Martinez.

See Also: Crypto Markets Tumble Following Iran’s Drone Attack Against Israel, Investor Warns Of Continued Selloff

Why It Matters: The warning from Martinez comes at a time when the cryptocurrency market is experiencing significant volatility. A day before, a crypto research firm expressed concerns about a possible major price correction for risk assets, including cryptocurrencies, due to inflation.

Another analyst, IncomeSharks, predicted a significant drop in Bitcoin’s price below the $60,000 mark, which could lead to panic selling. This was seen as a necessary step to clear out remaining holders relying on the support to hold.

Additionally, Martinez previously warned about the potential for massive liquidations on Binance if Bitcoin’s price fell to $50,500. This further highlights the current market uncertainty.

Despite the current market challenges, Bloomberg analysts have projected that Hong Kong’s newly approved Bitcoin and Ethereum (CRYPTO: ETH) ETFs are set to accumulate $1 billion in assets within the next two years, indicating a positive long-term outlook for the industry.

Price Action: Bitcoin is currently trading at $61,188, showing a 0.13% dip in the last 24 hours and a notable 38.52% gain year to date, according to data from Benzinga Pro.

Read Next: Why Are Dogecoin And Shiba Inu Silent Today?

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