A crypto strategist is warning that Bitcoin must hold one key level as support or BTC could experience a severe correction.
Trader Ali Martinez tells his 121,300 followers on the social media platform X that if Bitcoin fails to hold $91,700 as support, BTC could decline 30% from its current value.
“Given these factors – rising selling pressure, lack of fresh capital and declining network activity – it’s crucial for Bitcoin to hold above $91,700. If this level fails, BTC could crash to $74,000.”
The analyst uses pricing bands derived from Bitcoin’s Market Value to Realized Value (MVRV) to identify the key levels of support. The MVRV is the ratio of a crypto asset’s market capitalization relative to its realized capitalization or the value of all the coins at the price they were bought. When the MVRV value drops below zero, it indicates that the asset is oversold as traders who bought it at a certain time frame are witnessing losses.
While the trader says some metrics are flashing bearish for Bitcoin, he also says the cycle peak may not yet be in.
Based on previous cycles and price analysis using the 200-day moving average, he says there is still potential for the flagship crypto asset to surge more than 74% from its current value.
“But despite these bearish signals, multiple models suggest Bitcoin still has room to go up before reaching a market top. For instance, cycle shifts typically occur when BTC surpasses 2.4x the 200-day SMA (simple moving average), which currently sits at $184,600.”
He also says that the Mayer Multiple is flashing bullish for Bitcoin. The Mayer Multiple is a technical tool that measures the difference between the current price of BTC and the 200-day moving average to determine if Bitcoin is overbought or oversold.
“Similarly, the Mayer Multiple suggests Bitcoin has further upside, with a potential market top around $182,000.”
Bitcoin is trading for $105,757 at time of writing, up 3.7% in the last 24 hours.
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Featured Image: Shutterstock/Slava Gerj