Bitcoin (BTC), the world's largest crypto, has caught the attention of the market today due to a huge price drop. Bitcoin price fell below $66,000 after days above $69,000. This has raised concerns about the possibility of further price declines. However, one crypto analyst believes that a 30% correction in BTC price and it could be very bullish.
Ali Martinez, one of the top crypto analysts at X, made a statement about Bitcoin's price correction. In a tweet on X, he wrote, “A 30% price correction is a bullish thing that could happen to Bitcoin.”
Martinez noted that BTC liquidity will play a major role. He sees that a 30% Bitcoin price correction will help "market players have liquidity." This will ultimately push the value of BTC to new highs.
Also, in another tweet on X, Martinez talked about the important level for Bitcoin's price recovery. Martinez is monitoring a critical support level on the four-hour chart – the 200 Exponential Moving Average (EMA). Since early February, this level has proven to be a barrier against further declines for BTC.
Moreover, Martinez emphasized the importance of this level, stating that BTC's ability to hold could open the way for a large recovery in the price of Bitcoin. However, a drop below the support level, similar to what happened in mid-January, could lead to more losses for the Bitcoin price.
Meanwhile, Bitcoin price declined 7.04% to $64,892 on Tuesday, April 2. In contrast, the trading volume for BTC increased by 74.04% to $45.68 billion in the last 24 hours.
The recent pullback in BTC can be attributed to the large liquidation of long positions recorded today. QCP Capital recently shared the option market's early indications of a possible downside, particularly a downside correction risk. Bitcoin and Ethereum options are both showing high volatility, consistent with increased selling pressure amid declining sentiment.
