According to data from CoinMarketCap, Bitcoin (BTC) has experienced a rocky start to September declining by 8.16% in the past seven days. While the crypto market leader has shown some signs of recovery in the last day, there is still much uncertainty surrounding the BTC market. Commenting on Bitcoin’s potential next movement, popular analyst Ali Martinez has sounded out a stark warning to investors.
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Bitcoin Must Avoid Fall To $51,600 – Analyst
In an X post on Saturday, Ali Martinez issued a red market alert to traders, stating that whenever the price of Bitcoin plunged below its Realized Price-to-Liveliness Ratio, it often resulted in an extended price decline to the Realized Price.
The Realized Price-to-Liveliness Ratio is a market metric used to evaluate when BTC might be overvalued or undervalued. As the name implies, it is calculated by dividing the Realized Price i.e. the average price at which all Bitcoins In circulation were purchased, by Liveliness which is a measure of Bitcoin network activity.
According to Martinez, BTCs current Realized Price-to-Liveliness ratio stands at $51,600. Based on historical data, if the premier cryptocurrency falls below this level, it is likely to enter a period of massive selling pressure, plummeting to its present Realized Price which is valued at $31,500.
So far, Bitcoin has had a turbulent period in September, sliding from $59,000 to below $54,000 in the first week of the month. However, the digital asset has produced little resilience since then, rising by over 2% to nearly hit $55,000 on Saturday. While this minor price gain could initiate a bullish trajectory, investors should take note that September is traditionally a month with bearish returns for BTC, with an average loss of 4.78% in the last 11 years.
Bitcoin Far From ‘Seller Exhaustion’ Levels, Price Reversal May Yet Delay
In other news, another crypto analyst Rekt Capital has stated that Bitcoin’s sell-side volume is currently far from its “seller exhaustion levels” amidst recent price decline and increased volatility levels. Thus, the digital asset is likely to experience more price losses before potentially “kickstarting” a market rebound.
At the time of writing, BTC trades at $54,009 reflecting a 0.45% gain in the last 24 hours. Meanwhile, the token’s daily trading volume has declined by 60.39% and is currently valued at $19.41 billion. It is worth noting that Bitcoin presently finds itself in a strong support zone, a rebound from which could potentially drive the asset’s price as high as $60,000, indicating a potential 11% on its current price.
Featured image from StormGain, chart from Tradingview
Source: https://bitcoinist.com/bitcoin-may-slide-to-31500-in-downturn-analyst-warn/