According to data from CoinMarketCapBitcoin (BTC) has had a coarse start to September, falling 8.16% over the past seven days. While the cryptocurrency market leader has shown some signs of recovery over the past day, there is still a lot of uncertainty surrounding the BTC market. Commenting on Bitcoin’s potential next move, popular analyst Ali Martinez issued a stark warning to investors.
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Bitcoin Must Avoid Drop to $51,600 – Analyst
IN X post on SaturdayAli Martinez issued a red market alert to traders, stating that whenever Bitcoin price fell below the realized price to life rate ratio, it often resulted in a longer decline in price to realized price.
The Realized Price to Life Ratio is a market indicator used to assess whether BTC is overvalued or undervalued. As the name suggests, this metric is calculated by dividing the Realized Price, which is the average price at which all Bitcoins in circulation were purchased, by the Liveliness, which is a measure of the activity of the Bitcoin network.
According to Martinez, the current realized price to life ratio of BTC is $51,600. Based on historical data, if the major cryptocurrency falls below this level, it will likely enter a period of massive selling pressure, falling to the current realized price, which is valued at $31,500.
Bitcoin has had a tumultuous September so far, falling from $59,000 to below $54,000 in the first week of the month. However, the digital asset has shown a little resilience since then, rising over 2% to reach nearly $55,000 on Saturday. While this petite price boost could usher in a bullish trajectory, investors should keep in mind that September is traditionally a bearish month for BTC, with an average loss of 4.78% over the past 11 years.
Bitcoin Far from ‘Seller Exhaustion’ Levels, Price Reversal Could Still Delay
In other news, another cryptocurrency analyst from Rekt Capital has he stated that Bitcoin’s selling volume is currently far from “seller exhaustion levels” amid the recent price decline and increased levels of volatility. Thus, the digital asset is likely to experience larger price losses before potentially “kicking off” a market rebound.
At the time of writing, BTC is trading at $54,009, up 0.45% in the past 24 hours. Meanwhile, the token’s daily trading volume has fallen 60.39% and is currently valued at $19.41 billion. It is worth noting that Bitcoin is currently in a powerful support zone, and a bounce off it could potentially push the asset’s price to $60,000, which would be a potential 11% boost from the current price.
Featured image is from StormGain, chart is from Tradingview
