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bitcoin-bullish-cup-handle/” rel=”nofollow”>Cryptographic analyst Ali Martínez has suggested that bitcoin's decline might not be over despite the relief rally to $61,000. The analyst highlighted the price level of $60,365 as important to avoid a possible fall of crypto-longs-squeezed-bitcoin-crashes-57000/” rel=”nofollow”>only $57,000.
bitcoin needs to stay above this price level to avoid a crash
Martinez stated in an x post that $60,365 is a key price level to watch for bitcoin. He stated that a break below this could see the flagship cryptocurrency fall to $57,420. However, if it remains above this level, the analyst noted that a rally to $63,300 is on the table. Therefore, bitcoin's trajectory depends on the bitcoin-headed-below-60000-geopolitical-tensions-might-present-buying-opportunity-analyst-says/” rel=”nofollow”>crucial support at $60,000.
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In another analysis, Martinez suggested that bitcoin was likely to suffer more downward pressure in the near term rather than a rebound. He revealed that since May, each correction of the bitcoin-mvrv-hints-now-good-time-to-buy-analyst/” rel=”nofollow”>market value to realized value ratio (MVRV) of its 90-day average has led to a major bitcoin correction.
In line with this, the analyst noted that the latest rejection has already caused a 10% drop, suggesting that bitcoin could suffer a further price drop. Analyst bitcoin-4-year-cycles-are-over/” rel=”nofollow”>justin bennett He also believes that bitcoin will likely fall further and predicts that it could fall as low as $57,000. He added that it would be good to have relief to eliminate short positions at $63,200.
Meanwhile, he alluded to the bitcoin-plunges-under-54k-as-weak-us-jobs-data-shakes-markets/” rel=”nofollow”>US employment reportwhich will be published on October 4. The analyst expects significant volatility amid these inflation data. A weak jobs report could cause bitcoin to drop, similar to what happened in August, with the flagship cryptocurrency falling to $54,000. Inflation data is also important as it would provide information on whether the market can expect new rate cuts from the Federal Reserve this year.
Veteran trader Peter Brandt also appears to be bearish on bitcoin at the moment. Highlighted 'Three Blind Mice' pattern that was forming on the btc chart, indicating that the cryptocurrency will witness a bearish reversal following its uptrend in October.
Why a price drop could be good
He Santiment chain analysis platform suggested that a bitcoin price drop could be much needed for the flagship cryptocurrency to rise. The platform noted that the crowd has considerably cooled its enthusiasm for cryptocurrencies since btc retreated more than 9% since bitcoin–btc-metrics-point-to-local-bottom-at-49500-details/” rel=”nofollow”>your local high of $66,400 recorded on September 27.
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Holy He stated that this is encouraging, considering that markets typically move in the opposite direction to crowd expectations. As such, bitcoin price could enjoy a surprise rally as market participants become more bearish on its trajectory.
Ali Martinez noted that bitcoin was currently in the complacency stage and just needed to cool down before starting its next rally.
Featured image created with Dall.E, chart from Tradingview.com
