Bitcoin Alert: Short-Term Correction Ahead! Top Analyst Signals Key Support at $68,500

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Bitcoin traders are on high alert as prominent chart analyst Ali Martinez has warned of a potential short-term correction leading to a price drop in price. This caution comes amidst Bitcoin’s slight decline of 0.5% in the past 24 hours, settling at $70,834.5.

However, despite Martinez’s warning, daily inflows into Bitcoin ETFs continue their impressive streak, now at 17 consecutive days.

Bitcoin Price Correction Ahead

Ali Martinez has highlighted a potential short-term correction for Bitcoin (BTC) as the TD Sequential indicator signals a sell signal on the four-hour chart. This indicator suggests that BTC could experience a one- to four-candlestick correction before resuming its upward trend.

Meanwhile, this news comes amidst a surge in Bitcoin’s market capitalization, which has now reached $1.4 trillion, and a notable increase in trading volume.

Despite this warning, the U.S. spot Bitcoin exchange-traded funds (ETFs) have witnessed substantial inflows. On June 5, these ETFs recorded their third-highest daily inflow ever, with a total net intake exceeding $488 million. This marked the 17th consecutive day of net inflows, showcasing continued investor interest in Bitcoin.

Leading the surge in ETF inflows is Fidelity’s Wise Origin Bitcoin Fund, which attracted $221 million. BlackRock’s iShares Bitcoin Trust followed with $155 million in inflows. Additionally, Grayscale’s ETF GBTC reported a single-day inflow of $14.5802 million.

Crucial Support at $68500

According to Martinez’s analysis, the critical support level for Bitcoin currently rests at $68,500. If Bitcoin maintains this level, it could pave the way for further upward movement. 

However, Martinez notes that Bitcoin recently broke out of a symmetrical triangle at $69,000, signaling a bullish trend. The pivot point for Bitcoin is identified at $68,500, with immediate resistance anticipated at $71,200. 

Despite these positive indicators, the Relative Strength Index (RSI) stands at 66.95, suggesting overbought conditions and hinting at a potential price correction ahead leading to a short-term fall.

Bitcoin Dominance Continues 

On the flipside, Bitcoin’s dominance in the market remains strong at 54.53%, indicating continued faith from institutional and retail investors. This strength is especially noticeable because of the recent approval of a spot Ethereum ETF, showing that Bitcoin is still very popular in the crypto market.

Along with the recent surge in inflows follows the recent approval and listing of Bitcoin-regulated funds in Australia, the U.K., and Thailand.