According to CoinMarketCap data, Bitcoin (BTC) has faced a turbulent beginning in September, experiencing an 8.16% decline over the past week. While there have been slight signs of recovery in the last 24 hours, uncertainty continues to cloud the BTC market. Popular analyst Ali Martinez has issued a stark warning to investors regarding Bitcoin’s potential next movements.
Bitcoin Must Avoid Fall to $51,600 – Analyst Insights
In a recent post on X, Ali Martinez alerted traders to a critical market indicator, emphasizing that whenever Bitcoin’s price falls below its Realized Price-to-Liveliness Ratio, it often triggers a prolonged price decline to the Realized Price.
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The Realized Price-to-Liveliness Ratio is a market metric that assesses whether BTC is overvalued or undervalued. It is calculated by dividing the Realized Price—the average price at which all Bitcoins in circulation were purchased—by Liveliness, a measure of Bitcoin network activity.
Martinez noted that Bitcoin’s current Realized Price-to-Liveliness Ratio stands at $51,600. Historical data suggests that if Bitcoin drops below this level, it could face significant selling pressure, potentially plummeting to its current Realized Price of $31,500.
September has been challenging for Bitcoin, with its price sliding from $59,000 to below $54,000 in the month’s first week. However, the digital asset has shown some resilience, rising over 2% to nearly $55,000 on Saturday. Despite this minor gain, investors should remain cautious, as September has traditionally been a bearish month for BTC, with an average loss of 4.78% over the past 11 years.
Bitcoin Far From ‘Seller Exhaustion’ Levels – Potential Price Reversal Delays
Meanwhile, another crypto analyst, Rekt Capital, has pointed out that Bitcoin’s sell-side volume remains far from reaching its “seller exhaustion levels” amidst recent price declines and heightened volatility. This indicates that the digital asset might endure more price losses before potentially initiating a market rebound.
As of the time of writing, BTC is trading at $54,009, reflecting a 0.45% gain in the last 24 hours. However, daily trading volume has decreased by 60.39% and is currently valued at $19.41 billion. It is worth noting that Bitcoin is presently within a strong support zone, and a rebound from this level could drive the asset’s price up to $60,000, representing a potential 11% increase from its current value.
