According bitcoin/” target=”_blank” rel=”noopener nofollow”>CoinMarketCap databitcoin (btc) has had a rough start to September, down 8.16% over the past seven days. While the cryptocurrency market leader has shown some signs of recovery over the past day, there is still a lot of uncertainty surrounding the btc market. Commenting on bitcoin's possible next move, popular analyst Ali Martinez issued a stark warning to investors.
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bitcoin must avoid falling to $51,600, analyst says
In a x.com/ali_charts/status/1832457812015759734″ target=”_blank” rel=”noopener nofollow”>x post from SaturdayAli Martinez issued a red market alert to traders, stating that whenever the price of bitcoin fell below its realized price-to-life ratio, it often resulted in a prolonged drop in price back to the realized price.
The price-to-realized-life ratio is a market metric used to assess when btc might be overvalued or undervalued. As the name suggests, it is calculated by dividing the Realized Price, i.e. the average price at which all Bitcoins in circulation were purchased, by the Liveness, which is a measure of the activity of the bitcoin network.
According to Martinez, btc’s current realized price-to-life ratio stands at $51,600. Based on historical data, if the leading cryptocurrency falls below this level, it is likely to enter a period of massive selling pressure, plummeting to its current realized price, which is valued at $31,500.
bitcoin has had a turbulent period in September so far, falling from $59,000 to below $54,000 in the first week of the month. However, the digital asset has shown little resilience since then, rising by over 2% to nearly hit $55,000 on Saturday. While this small price gain could kick-start a bullish trajectory, investors should keep in mind that September is traditionally a month with bearish returns for btc, with an average loss of 4.78% over the past 11 years.
bitcoin is far from “seller exhaustion” levels, price reversal may still be delayed
In other news, another cryptocurrency analyst, Rekt Capital, has…x.com/rektcapital/status/1832518485617807644″ target=”_blank” rel=”noopener nofollow”> fixed that bitcoin’s selling volume is currently far from its “seller exhaustion levels” amid the recent price drop and rising volatility levels. Therefore, the digital asset is likely to experience further price losses before potentially “kicking off” a market rally.
At the time of writing, btc is trading at $54,009, reflecting a 0.45% gain over the past 24 hours. Meanwhile, the token’s daily trading volume has decreased by 60.39% and is currently valued at $19.41 billion. It is worth noting that bitcoin is currently in a strong support zone, a bounce from which could potentially take the asset’s price all the way up to $60,000, indicating a potential 11% upside over its current price.
Featured image from StormGain, chart from Tradingview
