Analyst Warns of Potential Bitcoin Correction to $90,000

Recent patterns in Bitcoin’s chart suggest a possible reversal of the upward trend and a price correction, according to technical analyst Ali Martinez.

#Bitcoin $BTC could be forming a head-and-shoulders pattern, which could trigger a price correction to $90,000! pic.twitter.com/mWLDabsYRV

— Ali (@ali_charts) December 3, 2024

On December 3, the expert noted that a bearish head-and-shoulders pattern has been forming on Bitcoin’s chart over the past seven days, indicating a potential trend reversal. He believes this could lead to a price correction to $90,000.

A day earlier, Martinez highlighted a general decline in on-chain activity, including the number of addresses, transaction volume, and whale activity.

#Bitcoin $BTC daily active addresses, transaction volume, and whale activity have slowed down over the past week. We need a spike in these metrics to confirm a continuation of the uptrend. pic.twitter.com/DHhP3FTwd7

— Ali (@ali_charts) December 2, 2024

“We need a spike in these metrics to confirm a continuation of the uptrend,” the analyst stated.

Atypical Altseason Ahead

Some experts believe an altcoin season is approaching.

Glassnode analyst known as CryptoVizArt believes this phase is already underway.

I believe altseason has already begun and probably lose to its peak ! https://t.co/9TwNF9m4vJ

— CryptoVizArt.₿ | ZiCast ? (@CryptoVizArt) November 27, 2024

He emphasized that the average number of active addresses in Solana has reached 18.6 million—40 times that of Ethereum’s 0.47 million.

CryptoQuant founder and CEO Ki Young Ju stated that the altseason will be atypical. The traditional signal of such a period—the flow of capital from digital gold to other cryptocurrencies—has lost its relevance.

He explained that the current Bitcoin bull run is driven by institutional interest, which does not involve swapping digital gold for other assets or using crypto exchanges.

According to the expert, the main indicator now is the volume of trades in fiat and stablecoin pairs.

Ju does not deny that an altseason will occur, but believes that only select projects will benefit:

“Altseason will come, but for the few. Not every coin will reach its previous peak,” he stated.

As of December 3, the Altcoin Season Index by Blockchain Center stands at 84. Values above 75 are considered a sign of altcoin season.

At the time of writing, Bitcoin is trading around $94,500.

On-chain analysts have noted that the number of coins in long-term investors’ wallets has reached a two-year low of 12.45 million BTC.