Bitcoin has had a rough start to September, dropping by almost 9% in the past week. While it has recovered slightly, things are still uncertain.
A Red Market Alert
Analyst Ali Martinez has issued a warning to investors. He’s using a metric called the Realized Price-to-Liveliness Ratio to predict Bitcoin’s future. This ratio basically tells you if Bitcoin is overvalued or undervalued.
Martinez says that if Bitcoin falls below its current Realized Price-to-Liveliness Ratio of $51,600, it could trigger a big sell-off, potentially dropping to $31,500.
September Blues for Bitcoin
September hasn’t been kind to Bitcoin in the past. Historically, Bitcoin has seen an average loss of almost 5% in September over the last 11 years.
More Pain Ahead?
Another analyst, Rekt Capital, says that Bitcoin’s recent price drop hasn’t reached a point where sellers are exhausted. This means there could be more price drops before a rebound.
A Glimpse of Hope
Despite the warnings, Bitcoin is currently in a strong support zone. If it bounces back from this zone, it could reach $60,000, a potential 11% increase from its current price.
