Bitcoin Crash Warning: Analyst Highlights Key Price Level to Avoid Plunge to $57,000
Bitcoin Crash Looms: Analyst Warns of Potential Plunge to $57,000
Despite a recent relief rally, leading crypto analyst Ali Martinez believes the Bitcoin crash may not be over just yet. His analysis points to a crucial price level at $60,365 that Bitcoin must hold to avoid a sharp decline towards $57,000.
Martinez emphasizes the significance of this key level in his latest X post, stating that a break below it could trigger a significant fall for the flagship cryptocurrency. However, if Bitcoin manages to stay above $60,365, Martinez suggests a rebound towards $63,300 is possible.
The Importance of the $60,365 Threshold
Martinez’s analysis is based on his observation of the market value to realized value (MVRV) ratio. Since May, every correction of this ratio from its 90-day average has resulted in substantial Bitcoin corrections. The recent rejection of the MVRV ratio has already caused a 10% drop in Bitcoin’s price, raising concerns about potential further declines.
This viewpoint is echoed by analyst Justin Bennett, who also predicts a dip to $57,000. He highlights the US Job report, set to be released on October 4, as a key driver of volatility. A weak report could trigger a similar crash to the one witnessed in August, pushing Bitcoin down to $54,000.
Bearish Sentiment and a Potential Upside
Veteran trader Peter Brandt shares a bearish outlook, observing a ‘Three Blind Mice’ pattern forming on the BTC chart. This pattern typically signals a bearish reversal, suggesting a potential downtrend following Bitcoin’s recent uptrend.
However, on-chain analytics platform Santiment offers a counterpoint, suggesting that a price crash could actually be beneficial for Bitcoin’s long-term prospects. Santiment notes that the crowd has cooled off its excitement towards crypto since BTC retraced from its local high, which is encouraging, as markets often move contrary to popular sentiment.
Martinez aligns with this view, stating that Bitcoin is currently in a stage of complacency and needs to cool off before initiating its next rally.
With several analysts pointing to potential downside risks and others suggesting that a crash might be beneficial for future growth, Bitcoin’s trajectory remains uncertain. The upcoming US Job report and other economic data will play a significant role in determining the direction of the flagship cryptocurrency.
**Disclaimer:** The information provided in this article is for informational purposes only and should not be considered financial advice. Trading cryptocurrencies carries a high level of risk, and it is essential to conduct thorough research and consult with a qualified financial advisor before making any investment decisions.
**Featured image:** Created with Dall.E; Chart from Tradingview.com