- Buyer exhaustion and increased selling pressure could lead BTC to $40,500.
- A breakdown below the 50 EMA may accelerate the dump below $40,000.
- If buyers rebound the price to $45,000, then BTC might rally to $52,000 later.
Bitcoin’s (BTC) plunge in the last 24 hours might not be the end of its correction phase, analyst Ali Martinez noted in a post on January 12. According to Martinez, the weekly chart kept getting “uglier” and this trend has presented another BTC sell signal.
The analyst used the Tom DeMark (TD) Sequential to back up his point. For context, the indicator identifies a turning point in a price trend. It can also be used to detect when exhaustion with a particular movement.
Chaos Before Relief
From the chart shared by Martinez, buyers had become exhausted while noting that BTC could fall as low as $40,500. He, however, revealed that the correction could be the stepping stone that leads Bitcoin above $52,000 later.
This weekly #Bitcoin candlestick is looking uglier by the minute!The post Bitcoin (BTC) Is Likely to Fall Below $42,000, Here’s Why appeared first on Coin Edition.Remember, the TD presents a sell signal anticipating a one to four weekly candlesticks correction…