A popular crypto analyst is predicting a potential Bitcoin (BTC) price drop. He’s warning that if a key support level breaks, BTC could plummet.
Bitcoin’s Critical Support Level
Ali Martinez, who boasts a large following on X (formerly Twitter), says Bitcoin needs to hold above $92,180. If it falls below this level, he believes it could drop to $74,400 – a price last seen in November. He’s using a metric called Market Value to Realized Value (MVRV) to identify this crucial support level. The MVRV essentially compares the current market cap to the total value of all Bitcoins at their purchase prices. A low MVRV suggests the market is oversold.
Martinez points out that Bitcoin’s MVRV momentum has been negative since the start of the year, indicating potential weakness.
Other Cryptocurrencies Under Scrutiny
Martinez isn’t just focused on Bitcoin. He’s also eyeing several other cryptocurrencies:
Dogwifhat (WIF)
He sees a potential bearish flag pattern forming for Dogwifhat (WIF), a memecoin. This could lead to a price drop of over 35%, potentially reaching $0.51.
Optimism (OP)
Martinez suggests Optimism (OP) might be forming a “head-and-shoulders” pattern, a bearish indicator that often precedes a price correction.
Polygon (POL)
Finally, he’s analyzing Polygon (POL) using the In/Out of the Money Around Price (IOMAP) metric. This metric shows where most investors bought POL. If the price falls below the key support zone between $0.364 and $0.509, another sell-off is possible.
Current Market Prices (at time of writing)
- Bitcoin (BTC): $96,234 (down 1.6% in 24 hours)
- Dogwifhat (WIF):
$0.79 (down marginally in 24 hours)
- Optimism (OP): $1.09 (down 2.6% in 24 hours)
- Polygon (POL): $0.3115 (down marginally in 24 hours)
Disclaimer: This information is for general knowledge only and is not financial advice. Always do your own research before investing in cryptocurrencies.
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