Bitcoin (BTC) price approached a new all-time high (ATH) this week but failed to break through. The price then fell significantly to $68,900, resulting in a loss of 5.3% of the total market capitalization of the crypto market. Altcoins such as Ethereum (ETH) and Solana (SOL) also saw significant declines of almost 5%.
Nevertheless, according to the well-known crypto analyst, there is Ali Martinez no reason to panic. He explains that these recent price movements are in line with his previous predictions.
Important support and prospects for a new bull run
At the end of October, Martinez outlined a roadmap for the possible price development of Bitcoin. He predicted that Bitcoin could initially rise to $72,000, then correct to $69,000 and then rise again to $78,000. Despite the recent decline, this scenario remains realistic and is developing exactly as expected so far. It is crucial that BTC holds its key support at $69,000.
If Bitcoin indeed continues its rise and reaches the previously mentioned price target of $78,000, this would represent a 13.4% increase. Many crypto investors are hoping that this will start a new bull run, which could lead to further price increases for BTC and a parabolic increase in the value of altcoins.
Pressure on technology stocks from high AI costs and uncertainty
The recent decline appears to have been triggered by developments in the stock markets. Technology stocks are under pressure due to the high costs of artificial intelligence (AI). Companies like Meta (the parent company of Facebook, Instagram and WhatsApp) and Alphabet (Google) are investing heavily in AI technology to stay innovative and competitive. However, these investments are costly and put a strain on their profit margins. There is also uncertainty about the immediate returns on these AI investments, making investors reluctant to fully dive in.
