bitcoin's price drop below $66,000 has taken the market by surprise, causing more than $90 million in liquidations in a 24-hour period. But even after falling so far, analysts don't believe the worst is over. Notably, crypto analyst Ali Martínez has said that bitcoin still has a ways to go before the decline ends, predicting another 20% drop from here.
bitcoin falls below the main price band
crypto analyst Ali Martinez published a new analysis on x (formerly twitter) on the price of bitcoin that paints a rather bearish picture for the pioneering cryptocurrency. According to Martínez, bitcoin's drop below $68,000 had actually pushed it below an important level.
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The biggest level of importance here is the $67,890 price range, below which the price has now fallen. As Martínez explains, this area is important since the “+0.5σ MVRV price band” is located here. It also means that a drop below this level is very bearish for the price and, as Martinez shows, bitcoin has already fallen below it.
This drop sets in motion a bearish move as the crypto analyst believes it may trigger a correction. Now, although corrections are normal, the expectation of how far the fall will go is what is worrying because the analyst has placed a possible target of $54,930 for the price.
<blockquote class="twitter-tweet”>
twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#bitcoin has fallen below the +0.5σ MVRV price band at $67,890, which may trigger a correction towards the middle price band at $54,930. pic.twitter.com/zZvswgpUpS
—Ali (@ali_charts) twitter.com/ali_charts/status/1803420971576987844?ref_src=twsrc%5Etfw” rel=”nofollow”>June 19, 2024
Such a drop would mean that the price of bitcoin would fall another 20% from its current level. Considering previous declines, this could be devastating for altcoins, whose prices could drop another 50% if btc fell below $55,000.
Navigating the drop in interest
An interesting development for bitcoin is the drop in interest experienced this week. For example, daily trading volume, according to CoinMarketCap, fell by 43.5% in the last day. This brings bitcoin's daily trading volume to around $19 billion from nearly $40 billion recorded the previous day.
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This drop in trading volume indicates that investors are taking fewer positions. Given the uncertainty surrounding the market, this is not a surprise, as investors tend to wait for the situation to improve before taking more positions.
The crypto Fear & Greed Index has also declined. crypto/fear-and-greed-index/” rel=”nofollow”>demonstration That fear is growing in the market. It now has a score of 60, which shows greed, a far cry from the score of 76 in May, which showed extreme greed in the market.
At the time of writing, the price of bitcoin remains at $65,667, with a gain of 0.77% in the last day.
Featured image created with Dall.E, chart from Tradingview.com
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