A prominent crypto analyst is sounding a cautionary note, suggesting that a widely-followed altcoin might be poised for a substantial downturn.

Ali Martinez, a crypto trader with a substantial following of 66,600 on X, has warned that Chainlink (LINK), a decentralized oracle provider, could experience a significant price correction. Martinez predicts a potential 45% decline if LINK fails to hold above the $12.70 support level.

Martinez’s analysis, supported by charts, indicates that LINK faces the risk of descending from a head-and-shoulders reversal pattern, typically signaling the beginning of a downtrend. According to current data, LINK is trading at $12.22, reflecting a decrease of 1.55% over the past 24 hours.

Shifting focus to Bitcoin (BTC), Martinez suggests that Bitcoin might drop below $50,000 before bullish investors intervene. Highlighting a lack of substantial support, Martinez points to a critical demand zone at approximately $47,000. He emphasizes that for Bitcoin’s bullish trend to resume, BTC must consolidate above $61,000.

Martinez further highlights that large crypto holders have sold more than 30,000 BTC, amounting to around $1.8 billion, in the last month alone. Moreover, in the past week, 21,000 BTC worth $1.24 billion have been transferred to crypto exchanges, potentially available for sale on the open market.

As of the latest update, Bitcoin is trading at $56,235, registering a 1.16% decrease in the last 24 hours.

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