With the BTC price at a critical price threshold, Martinez first questioned whether a new all-time high or a correction would come first. According to the analyst, the BTC price has hit a key resistance area at $107,000 following a 42% rally last month. Martinez added that this level is historically a turning point.
However, the analyst argued that the current momentum has become overstretched, with the RSI data on the daily chart showing BTC in overbought territory, which is a common occurrence in short-term pullbacks.
Warning about the pullback, the analyst also said that BTC whales sold around 30,000 coins, which means profit taking from current levels has occurred.
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According to the analyst, the area between $95,850 and $98,730 will be a must-hold support area for BTC if selling pressure increases. Martinez noted that a breakout from these levels could result in a deeper correction for BTC.
On the bullish side, the analyst claimed that if the Bitcoin price manages to stay above the mentioned level, it could enter a period of consolidation and gather strength for a breakout towards $116,900 as the next major target.
*This is not investment advice.
Continue Reading: Will the Next Move in Bitcoin Prices Lead to a Record or Is a Correction on the Way? Analyst Outlines Two Price Scenarios
