Trader Issues Bitcoin Alert, Says BTC Could Drop Sharply if History Repeats Itself – Here Are His Targets
Cryptocurrency analyst and trader Ali Martinez is warning of a potential sharp drop in the price of Bitcoin ( BTC ) if history repeats itself.
Martinez tells his 145,900 followers on the social media platform X that Bitcoin has previously corrected by 20% to 30% in two instances after the Relative Strength Index (RSI) on the weekly chart fell below the 14-period smooth moving average (SMA) overlaid on it.
The RSI is a momentum oscillator used to determine oversold or overbought conditions. The RSI crossing the moving average indicates a bearish signal, while the RSI crossing above a moving average is a bullish signal.
“If history repeats, we could see a move down to $95,000!”
Source: Ali Martinez/X
The widely followed analyst also says that based on Bitcoin’s Market Value to Realized Value (MVRV) Extreme Deviation Price Bands, the $111,000 price is a “critical support level” for the crypto king and could lead to a correction of around 20% from the current area if it breaks.
The MVRV Extreme Deviation Pricing Bands are a tool used to determine potential support and resistance levels based on the standard deviation of Bitcoin’s MVRV ratio from its historical mean.
The MVRV ratio, which is simply the ratio of Bitcoin’s market cap relative to the price when coins were last moved, indicates whether Bitcoin at current prices is above a fair value (overvalued) or not (undervalued).
Source: Ali Martinez/X
Bitcoin is trading at $114,168 at time of writing.
Featured Image: Shutterstock/sdecoret/Konstantin Faraktinov
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Ethereum undergoes "Fusaka upgrade" to further "scale and improve efficiency," strengthening on-chain settlement capabilities
Ethereum has activated the key "Fusaka" upgrade, increasing Layer-2 data capacity eightfold through PeerDAS technology. Combined with the BPO fork mechanism and the blob base price mechanism, this upgrade is expected to significantly reduce Layer-2 operating costs and ensure the network’s long-term economic sustainability.
Down 1/3 in the first minute after opening, halved in 26 minutes, "Trump concept" dumped by the market
Cryptocurrency projects related to the Trump family were once market favorites, but are now experiencing a dramatic collapse in trust.
Can the Federal Reserve win the battle to defend its independence? Powell's reappointment may be the key to victory or defeat
Bank of America believes that there is little to fear if Trump nominates a new Federal Reserve Chair, as the White House's ability to exert pressure will be significantly limited if Powell remains as a board member. In addition, a more hawkish committee would leave a Chair seeking to accommodate Trump's hopes for rate cuts with no room to maneuver.
From panic to reversal: BTC rises above $93,000 again, has a structural turning point arrived?
BTC has strongly returned to $93,000. Although there appears to be no direct positive catalyst, in reality, four macro factors are resonating simultaneously to trigger a potential structural turning point: expectations of interest rate cuts, improving liquidity, political transitions, and the loosening stance of traditional institutions.
Trending news
MoreCrypto prices
More
