Despite early hopes for a steady price increase with the start of a typically bullish Q4, Bitcoin has struggled to hold its ground, recently dropping as low as $54,000. Given the ongoing bearish trend, prominent crypto analyst Ali Martinez has warned that Bitcoin could drop further, potentially to $31,500. Here’s why analysts are predicting this drop.
Strong Warning: BTC Drops to $31,500
In a recent tweet post, Ali Martinez pointed out that Bitcoin historically tends to experience further declines once it drops below its Realized Price-to-Liveliness Ratio. This key metric, currently at $51,600, is a leading indicator that tracks the cost basis of Bitcoin holders and overall market activity.
If Bitcoin breaks below this level, Martinez believes the next stop could be $31,500, which is the Realized Price, an average price at which all Bitcoins in circulation are purchased. This pattern has been seen in previous market cycles.
When Bitcoin falls below the realized price-to-viability ratio, the price typically continues to fall until it reaches the realized price of $31,500.
Meanwhile, Martinez’s warning comes as Bitcoin struggles to maintain momentum after a recent market drop, with the crypto market closely monitoring these critical levels.
Bitcoin Price Action
Currently, Bitcoin price is trading around $54,340, reflecting a 1% increase over the past 24 hours. Despite this, BTC trading volume has dropped by 62%, currently hovering at $18 billion, with a market cap of $1.07 trillion. At the same time, Bitcoin’s market dominance has dropped slightly to 56.81%, reflecting a 0.09% drop over the past day.
Recent data from Soso shows that Bitcoin ETFs have seen a massive outflow of $706.19 million through September 6, the largest outflow since the launch of these exchange-traded products this year.
