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Cryptocurrency analyst Ali Martinez He noted that the Bitcoin collapse may not be over despite relief rising to $61,000. The analyst highlighted the $60,365 price level as important to avoid a potential collapse As low as $57,000.
Bitcoin needs to stay above this price level to avoid a collapse
Martinez stated in X’s post that $60,365 is a key price level to watch for Bitcoin. He claimed that a break below this level could cause the major cryptocurrency to fall to $57,420. However, if it continues above this level, the analyst has indicated that a bounce to $63,300 is on the table. Therefore, Bitcoin’s path depends on… Critical support in the amount of $60,000.
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In another analysis, Martinez noted that Bitcoin is likely to suffer more downward pressure in the short term rather than a bounce. He revealed that since May, every correction has been made Market value to realized value ratio (MVRV). From its 90-day average it led to a major correction in Bitcoin.
In line with this, the analyst noted that the recent rejection has already led to a 10% decline, suggesting that Bitcoin may suffer further price declines. analyst Justin Bennett He also believes that Bitcoin will likely fall and predicts that it could fall as low as $57,000. He added that the relief of exiting short positions of $63,200 would be good.
Meanwhile, he pointed out US jobs reportwhich is scheduled to be released on October 4. The analyst expects significant fluctuations amid these inflation data. A weak jobs report could lead to a Bitcoin collapse, similar to what happened in August, with the flagship cryptocurrency falling to $54,000. Inflation data is also important because it will provide insight into whether the market can expect it More interest rate cuts From the Federal Reserve this year.
Veteran trader Peter Brandt also appears to be bearish on Bitcoin at the moment. Highlight “Three Blind Mice” The pattern was forming on the Bitcoin chart, suggesting that the cryptocurrency is set to see a bearish reversal following its bullish trend in October.
Why can price collapses be a good thing?
the Santiment on-chain analytics platform He suggested that a collapse in Bitcoin prices may be absolutely necessary for the flagship cryptocurrency to rise. The platform noted that the public has significantly cooled its enthusiasm for cryptocurrencies since Bitcoin fell more than 9% from Its local height $66,400 was recorded on September 27.
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saint He claimed that this is encouraging, considering that markets usually move in the opposite direction to public expectations. As such, the price of Bitcoin can enjoy a sudden rise, given that market participants are more bearish in its path.
Ali Martinez He noted that Bitcoin is currently in a complacency phase and just needs to calm down before it begins its next rally.
Featured image created with Dall.E, chart from Tradingview.com