Analyst Predicts Bitcoin Possible Drop to $32,700 Based on Fibonacci Level

Bitcoin’s (BTC) price has traded in the negative territory for about a week, and more bearish correction might be underway.

Bitcoin has continued to lead the market lower, with the price and market capitalization dropping as low as $38,909.54 and $763,755,962,516 after falling by 4.46% in the past 24 hours. The Bitcoin downturn has, however, not impacted its trading volume, which has soared by 80% in 24 hours to $31,042,793,824.

According to top market analyst Ali Martinez, Bitcoin’s price growth is showing similarities with historical patterns. According to his analysis, the ongoing correction might have a steeper bottom ahead.

Bitcoin Price: The Worst May Not Be Over Yet

Martinez drew attention to the past two bull market cycles, where Bitcoin soared to the 78.6% Fibonacci level before cooling down at the 50% level.

Per the analyst’s observation, Bitcoin has recently reached the troubling 78.6% Fibonacci level again, and based on previous trends, this suggests a correction is inbound. Martinez believes that if the historical patterns play out again, Bitcoin might drop to the $32,700 price level in alignment with the 50% Fibonacci retracement projection.

Reflecting on the last two bull cycles, $BTC typically retraced to the 50% Fibonacci level after hitting the 78.6% Fib.

Recently, #Bitcoin reached this 78.6% Fib level again, suggesting a potential correction. If this pattern holds true, we could see #BTC drop to $32,700,… pic.twitter.com/AArR9adJbC

— Ali (@ali_charts) January 23, 2024

Bitcoin’s price has already dropped below the psychologically important support level of $40,000. While the digital currency has not retested the $32,000 price range since at least October 2023, further plunges from the current level might trigger a landslide panic selling that might make things technically worse for Bitcoin and the market.

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Catalysts to Watch Out for

While the data hardly lies about market trends, unique catalysts like the forthcoming Bitcoin halving event might help shape sentiments for good before mid-year. 

With the advent of the spot Bitcoin ETF product failing to usher in a corresponding growth in the price of BTC, market analysts are looking forward to the deflationary impact of the halving event to stir price growth in general.

The Bitcoin halving event might serve as the needed complement to the spot BTC ETF product that might help stabilize price in the mid-to-long term.