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the Bitcoin price collapse Less than $66,000 stunned the market, resulting in more than $90 million being liquidated in a 24-hour period. But even after the already significant decline, analysts don’t think the worst is over. In particular, cryptocurrency analyst Ali Martinez said that Bitcoin probably still has a ways to go before the collapse is over, predicting another 20% decline from here.
Bitcoin is under the main pricing range
Cryptocurrency analyst Ali Martinez posted a new analysis on X (formerly Twitter) on Bitcoin price This paints a somewhat bearish picture for the leading cryptocurrency. According to Martinez, Bitcoin’s collapse below $68,000 has already pushed it below an important level.
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The key level of importance here is the $67,890 pricing range, below which the price has now fallen. As Martinez explains, this area is important as the “+0.5σ MVRV pricing range” lies here. This also means that a break below this level is very bearish for the price, and as Martinez explains, Bitcoin has already fallen below it.
This fall sets a bearish move that cryptocurrency analyst believes could lead to a correction. Now, although corrections are normal, it is the prediction of how far the collapse will go that is worrying as the analyst has set a potential target of $54,930 for the price.
#Bitcoin It fell below the +0.5σ MVRV pricing range at $67,890, which could lead to a correction towards the mid-pricing range at $54,930. pic.twitter.com/zZvswgpUpS
– Ali (@ali_charts) June 19, 2024
Such a collapse means that Bitcoin price It will decrease by another 20% from its current level. Given previous crashes, this could be devastating for altcoins, whose prices could fall another 50% if Bitcoin collapses below $55,000.
Navigating low interest
One interesting development for Bitcoin is low interest Which was tried this week. For example, daily trading volume, according to CoinMarketCap, fell by 43.5% in the last day. This brings Bitcoin’s daily trading volume to about $19 billion from about $40 billion recorded the previous day.
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This decrease in trading volume indicates that investors are taking fewer positions. With the uncertainty surrounding the market, this does not come as a surprise, since investors tend to wait for the situation to improve before taking further positions.
The Cryptocurrency Fear and Greed Index also declined, an offer This fear is growing in the market. It now sits at a score of 60, which indicates greed, which is a far cry from May’s score of 76, which showed extreme greed in the market.
At the time of writing, Bitcoin’s price was flat at $65,667, with a 0.77% gain in the last day.
Featured image created with Dall.E, chart from Tradingview.com
