‘Don’t Fear a Drop to $60K:’ Analyst Sees That as a Healthy Reset for BTC

The leading cryptocurrency experienced enhanced volatility over the past week, eventually stabilizing at around $64,500 (per CoinGecko’s data).

Given the ongoing bear market, though, the price may soon head south again, but one popular analyst claimed that a dip to around $60K should actually be welcomed as good news.

Exactly What BTC Needs?

The renowned analyst Ali Martinez argued that a drop by nearly five grand would complete a classic inverse head-and-shoulders pattern that could set the stage for a serious pump. The setup consists of three dips – a low (left shoulder), a deeper plunge (head), and another low (right shoulder) and signals that sellers are running out of steam.

According to Martinez, the completion of the pattern combined with a confirmed breakout above $66,500 could open the door to a pump to a two-month high of around $74,000.

The analyst has been quite focused on BTC lately, revealing that whales have purchased roughly 29,000 units (worth more than $1.8 billion at current rates) over the past week. Accumulation from this cohort of investors is considered a bullish sign as it suggests that they are preparing for a potential upward move. Their actions could encourage smaller players to hop on the bandwagon, too, thus distributing fresh capital into the ecosystem.

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