Bitcoin’s price drop below $66,000 surprised the market, causing more than $90 million worth of liquidation in 24 hours. However, even after such a significant decline, analysts do not believe that the worst is over. In particular, crypto analyst Ali Martinez said that Bitcoin still has a long way to go before the crash is over, predicting another 20% decline.
Bitcoin falls below the major price band
Crypto analyst Ali Martinez has published a fresh analysis of Bitcoin’s price on X (formerly Twitter), which paints a rather bearish picture for the pioneering cryptocurrency. According to Martinez, Bitcoin’s crash below $68,000 actually pushed it below an crucial level.
The most crucial level here is the $67,890 price range, below which the price has now fallen. As Martinez explains, this area is crucial because it is where the “+0.5σ MVRV price range” lies. This also means that a breakdown below this level is very bearish for the price and as Martinez shows, Bitcoin has already fallen below this level.
This fall is causing a bearish move as a cryptocurrency analyst believes it could trigger a correction. Now, while corrections are taking a normal course, there are worrisome expectations about how far the crash will go, as the analyst has set a possible price target of $54,930.
#Bitcoin fell below the +0.5σ MVRV price range of $67,890, which could trigger a correction towards the mid-price range of $54,930. pic.twitter.com/zZvswgpUpS
— Ali (@ali_charts) June 19, 2024
Such a crash would mean Bitcoin’s price would drop another 20% from its current level. Given previous crashes, this could be disastrous for altcoins, whose prices could drop another 50% if BTC falls below $55,000.
Navigating a decline in interest
An intriguing event for Bitcoin is the decline in interest that occurred this week. For example, according to CoinMarketCap, daily trading volume dropped 43.5% in the last day. This brings Bitcoin’s daily trading volume to around $19 billion from the nearly $40 billion recorded the previous day.
This decline in trading volume indicates that investors are taking fewer positions. Given the uncertainty in the market, this is not surprising given that investors tend to wait for things to improve before taking further positions.
The Crypto Fear & Greed Index also dropped, showing that fear is growing in the market. Its current score is 60, which indicates greed, but is a far cry from May’s score of 76, which indicates extreme greed in the market.
At the time of writing, Bitcoin price remains at $65,667, with an augment of 0.77% in the last day.
Featured image created with Dall.E, chart from Tradingview.com
