Bitcoin May Fall To $51,000 After Wedge Pattern Breakdown, Analyst Says

Bitcoin may be recovering toward $57,000 following a steep 20% plunge on Monday that dropped the biggest cryptocurrency below $49,000, its lowest level since February. A worrying 10-day chart pattern suggests BTC is still in danger.


Martinez cautions investors that a collapse might bring BTC back down to $51,000 from $57,000 at the wedge's top border.

Market value to realized value (MVRV) pricing bands identify Bitcoin's crucial support around $54,000. This level must hold to avoid a drop to $40,000. If the $54,000 support holds, the analyst sees $67,000 as upward resistance.

Another analyst, Rekt Capital, has noted that Bitcoin is trying to rebound and fill the new CME gap above, with a 4.5% price recovery in the previous hours from $59,400 to $62,550. The expert highlighted that a lesser CME spread between $53,700 and $54,600 may be filled by a short-term market downturn.

Reasons to be optimistic about Bitcoin
Despite gloomy technical signs, Ki Young Ju, founder and CEO of CryptoQuant, says numerous critical measures imply the bull market is intact despite the current dip.

Ju said Bitcoin's hashrate, which measures the network's computational power, is recovering. With hashrate hitting record highs, Ju believes miner surrender is nigh.

US mining costs $43,000 per BTC, therefore the hashrate will likely stay steady until prices drop below this level.

Ju has also seen big Bitcoin inflows into custodial accounts, suggesting that institutional investors, or “whales,” are buying digital assets.

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