If Bitcoin (BTC) Cannot Regain This Level, Its Price Will Drop to $51,970
Bitcoin, the world’s largest cryptocurrency, continues to trade under pressure as BTC price has repeatedly failed to breach the $64,000 resistance levels. As of the moment the article was published, BTC is trading at $60,990 with a market value of $1.2 trillion.
Bitcoin Price Expected to Drop Below $52,000
Crypto analyst Ali Martinez outlined two different scenarios for the price trajectory of Bitcoin (BTC) in a recent analysis.
Martinez suggests that if BTC manages to reclaim $64,290 as the support level, it could pave the way for an upward move towards $76,610. However, failure to exceed this important threshold could result in BTC revisiting the $51,970 support.
This analysis underlines the importance of $64,290 as a key level for Bitcoin’s short-term price movement. This is one of the biggest consolidation phases for Bitcoin in its history. Therefore, some fluctuation can be expected in the coming weeks.
Kindness: Ali Martínez
Another crypto market analyst, Michael van de Poppe, shared similar views. He said Bitcoin is at a crucial level and its fate depends on certain price points. Failure to sustain above $60,000 could lead to an eventual downside move towards the $52,000 to $55,000 range. However, a breakthrough above $63,000 could signal a resurgence and potentially push BTC towards $70,000 to $72,000.
On-chain Activity is at Historical Low
Latest information from Santiment data shows a significant decline in Bitcoin’s on-chain activity, with transactions approaching historical lows. Analysis shows that investors have significantly reduced their trading activity in the last two months following Bitcoin’s all-time high.
However, this decline in on-chain activity may not necessarily indicate an impending decline in Bitcoin price. Rather, it reportedly served as a signal of increasing fear and indecision among market participants.
Courtesy: Santiment
On the other hand, long-term holders of Bitcoin are holding their money tightly. The Long-Term Holders Spending Binary Indicator has revealed a significant change in behavior among Long-Term Bitcoin Holders (LTH). Data shows that LTHs sold approximately 1.3 million BTC when the Bitcoin price rose above $73,000. However, current trends show that LTHs have stopped selling their BTC holdings.
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Bhushan is a FinTech enthusiast and has a good ability to understand financial markets. His interest in economics and finance draws his attention to the emerging Blockchain Technology and Cryptocurrency markets. He is in a constant learning process and motivates himself by sharing the knowledge he has acquired. In her spare time, she reads thriller novels and sometimes explores her culinary skills.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.
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