The market was stunned as the price of Bitcoin fell below $66,000, resulting in liquidations of more than $90 million in 24 hours. But even after falling so far already, analysts don’t believe the worst is over. In particular, cryptocurrency analyst Ali Martinez said Bitcoin still has a long way to go before the collapse is over, predicting it could fall another 20% from here.
Bitcoin falls below a major price band.
Crypto analyst Ali Martinez has posted a new analysis on X (formerly Twitter) on Bitcoin price that paints a somewhat bearish picture for the pioneering cryptocurrency. According to Martinez, Bitcoin has actually fallen below a significant level as it plunges below $68,000.
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The most important thing here is the $67,890 price range, which the price has now fallen below. As Martinez explained, this area is important because the “+0.5σ MVRV price band” is located here. This also means that a crash below this level would be very bearish for the price, and as Martinez shows, Bitcoin has already fallen below this level.
This fall marks the beginning of a downward trend as cryptocurrency analysts believe it could trigger a correction. A correction is now normal, but expectations of how far the crash will go are worrying as analysts have set a target of $54,930 for the price.
#Bitcoin It has fallen below the +0.5σ MVRV price band of $67,890, which may trigger a correction towards the average price band of $54,930. pic.twitter.com/zZvswgpUpS
— Ali (@ali_charts) June 19, 2024
Such a collapse would mean a further 20% decline in Bitcoin price from current levels. Given previous crashes, this could be devastating for the altcoin, which could see its price fall another 50% if BTC crashes below $55,000.
Explore falling interest rates
One of the more interesting developments in Bitcoin is the drop in interest it has experienced this week. For example, daily trading volume was down 43.5% in the past day, according to CoinMarketCap. This brought Bitcoin daily trading volume to around $19 billion, up from nearly $40 billion recorded the previous day.
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This decrease in trading volume indicates that investors are taking smaller positions. This is not surprising, considering that with the uncertainty surrounding the markets, investors tend to wait for conditions to improve before taking larger positions.
The Crypto Fear & Greed Index also fell, showing that fear is growing in the market. The current score is 60, which indicates greed, which is a big difference from the 76 point in May, when the market showed extreme greed.
As of this writing, the price of Bitcoin is $65,667, up 0.77% over the past day.
Featured image created with Dall.E, chart from Tradingview.com