In a recent analysis, renowned crypto analyst sounded the alarm as slipped below a critical supply zone, ranging from $41,200 to $42,400.
Martinez, utilizing on-chain data from IntoTheBlock, highlighted that 1.87 million addresses, holding a substantial 730,000 BTC, were accumulated in this precarious territory.
The downturn has raised concerns about potential sell-offs as holders may seek to cut losses, increasing selling pressure. Martinez forewarns of a potential decline to the next demand zone, situated between $37,500 and $38,700, where 1.28 million addresses hold 553,000 .
Source: Despite these warnings, a twofold situation emerges. Martinez’s analysis reveals that buyers in profit are concentrated at levels approximately 7% below current market levels.
The question then arises: If holders at a loss begin selling, triggering a pullback to $38,700, will buyers show interest in this chaotic market where unexpected “black swan” events are always a possibility?
Gap
Adding to the cautionary outlook, another market indicator, the futures chart on the CME, points toward a potential fall. A gap, ranging from $39,640 to $40,325 per BTC, was formed in early December, and such gaps are generally expected to be closed, according to common sense.
Source: If history repeats itself, this gap could be filled as part of a bearish move, reinforcing the possibility of a descent to the $37,500 mark.
Bulls are holding tight, but the looming challenges may put their resilience to the ultimate test.
This article was originally published on U.Today
https://www.investing.com/news/cryptocurrency-news/bitcoin-price-prediction-bulls-hold-tight-as-top-analyst-eyes-37500-per-btc-3258787
