The Bitcoin price crash below $66,000 has taken the market by surprise, leading to more than $90 million in liquidations in a 24-hour period. But even after falling so much, analysts don’t believe the worst is over. In particular, crypto analyst Ali Martinez has said that Bitcoin may still have a long way to go before the crash is over, predicting another 20% drop from here.
Bitcoin falls under the large price range
Crypto analyst Ali Martinez posted a new analysis on X (formerly Twitter) about the Bitcoin price, which paints a rather bearish picture for the pioneer cryptocurrency. According to Martinez, the Bitcoin crash below $68,000 had actually pushed the value below a key level.
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The key level here is the $67,890 price range, which the price has now fallen below. As Martinez explains, this area is important because this is where the “+0.5σ MVRV price band” lies. It also means that a crash below this level is very bearish for the price, and as Martinez shows, Bitcoin has already fallen below it.
This drop creates a bearish move as the crypto analyst believes it could trigger a correction. While corrections are normal, the expectation of how far the crash will go is worrying as the analyst has set a possible price target of $54,930.
#Bitcoin has fallen below the +0.5σ MVRV price band of $67,890, which could trigger a correction towards the average price band of $54,930. pic.twitter.com/zZvswgpUpS
— Ali (@ali_charts) June 19, 2024
Such a crash would mean that the Bitcoin price would drop another 20% from current levels. Given the previous crashes, this could be devastating for altcoins, whose prices could fall another 50% if BTC were to crash below $55,000.
Navigate the drop in interest
An interesting development for Bitcoin is the drop in interest this week. For example, daily trading volume fell 43.5% in the past day, according to CoinMarketCap. This brings Bitcoin’s daily trading volume to approximately $19 billion, up from the nearly $40 billion recorded the day before.
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This drop in trading volume indicates that investors are taking fewer positions. Given the uncertainty in the market, this is not a surprise as investors tend to wait for the situation to improve before taking new positions.
The Crypto Fear & Greed Index has also fallen, to show that fear is growing in the market. It now stands at a score of 60, which shows greed, a far cry from May’s score of 76, which showed extreme greed in the market.
At the time of writing, the Bitcoin price stands at $65,667, with a gain of 0.77% on the last day.
Featured image created with Dall.E, chart from Tradingview.com