Late Bitcoin (BTC) Investors Face Higher Risk as Market Expert Warns of Impending Price Correction

Bitcoin is currently riding the bullish wave in the midst of growing market optimism, which has caused the largest crypto asset to reach a new all-time high

Bitcoin price has enjoyed a remarkable rally in recent weeks, smashing through several resistance levels to reach a new all-time high. However, a crypto analyst has warned that this rapid ascent may not be entirely favorable to late investors.

In a recent post on X (formerly Twitter), market expert and trader Ali Martinez highlighted the potential risks faced by late Bitcoin investors as the digital asset approaches key barrier levels.

According to Martinez, while the long-term outlook for BTC remains promising, investors should be cognizant of the short-term price fluctuations and the challenges of entering an established bull market. This essentially means that BTC's recent surge could be followed by sharp corrections before resuming its upward trajectory.

The market expert's warning comes after the key Tom DeMark (TD) Sequential indicator on the 4-hour time frame signaled a sell setup, suggesting an impending price correction, possibly to the $72,000 level.

However, Martinez anticipates that this bearish setup could be invalidated if BTC manages to close above $75,400, leading to a rally to the $78,000 level.

Martinez's analysis comes amid growing market optimism and anticipation of BTC's promising future, with several market participants and enthusiasts expressing confidence in the coin's capability to reach new record highs.

Based on the crypto expert's analysis, the next peak in market enthusiasm over BTC's price performance is at the $85,000 level. He anticipates that the coin's journey to this pivotal level will begin once it reaches $78,000.

However, the path to $85,000 may not be straightforward, as Martinez also envisions a possible pullback to $71,500 after hitting $78,000, before resuming its upward movement to $85,000. "This is playing as predicted. I think Bitcoin hits $78,000, retraces to $71,500, and then rebound to $85,000,” he stated.

Meanwhile, another crypto analyst, Negentropic, has emphasized the importance of momentum in BTC's potential to enter uncharted territory.

According to Negentropic, Bitcoin has been in a bullish zone for about a month after forming a double bottom around $60,000 in October, following a familiar pattern that led to previous all-time highs.

The expert highlights that this momentum is crucial for the coin's next rally. If this bullish momentum continues, Negentropic believes that it will propel BTC to new heights, preparing it for even “higher peaks.”