Bitcoin Crash Below $66,000 Stuns Market, Why A Drop To $54,930 Is Possible
June 20 2024 - 6:00PM
NEWSBTC
The Bitcoin price crash below $66,000 has taken the market by
surprise, leading to over $90 million in liquidations in a 24-hour
period. But even after dropping so much already, analysts do not
believe that the worst is over. In particular, crypto analyst Ali
Martinez has said that Bitcoin may still have a ways to go before
the crash is over, prediction another 20% decline from here.
Bitcoin Falls Below Major Pricing Band Crypto analyst Ali Martinez
posted a new analysis on X (formerly Twitter) on the Bitcoin price
that paints a rather bearish picture for the pioneer
cryptocurrency. According to Martinez, the Bitcoin crash below
$68,000 had actually pushed it below an important level. Related
Reading: Analyst Says XRP Price Is Long Overdue For Bullish Wave,
Here’s The Target The major level of importance here is the $67,890
pricing range, which the price has now fallen below. As Martinez
explains, this area is important as the “+0.5σ MVRV pricing band”
lies here. 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 fall puts a bearish motion in place as the
crypto analyst believes it may trigger a correction. Now, while
corrections are normal, the expectation for how far the crash will
go is what is worrying because the analyst has placed a possible
$54,930 target for the price. #Bitcoin has dropped below the +0.5σ
MVRV pricing band at $67,890, which may trigger a correction toward
the mean pricing band at $54,930. pic.twitter.com/zZvswgpUpS — Ali
(@ali_charts) June 19, 2024 Such a crash would mean that the
Bitcoin price would fall another 20% from its current level. Given
the previous crashes, this could be devastating for altcoins, whose
prices could fall another 50% if BTC were to crash below $55,000.
Navigating The Drop In Interest One interesting development for
Bitcoin is the drop in interest that has been experienced this
week. For example, the daily trading volume, according to
CoinMarketCap, fell 43.5% in the last day along. This brings the
Bitcoin daily trading volume to around $19 billion from the almost
$40 billion recorded the previous day. Related Reading: Cardano
Bucks Bears As Large Transactions Climb To $10 Billion, Can This
Drive Price To $1? This drop in trading volume indicates that
investors are taking fewer positions. With the uncertainty
surrounding the market, this comes as no surprise, given that
investors are prone to wait for the situation to improve before
taking more positions. The Crypto Fear & Greed Index has also
declined, showing that fear is growing in the market. It is now
sitting at a score of 60, which shows greed, a long way from May’s
score of 76, which showed extreme greed in the market. At the time
of writing, the Bitcoin price is holding at $65,667, with a 0.77%
gain in the last day. Featured image created with Dall.E, chart
from Tradingview.com
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