[Will Bitcoin Drop to $31,500? Charts suggest Bitcoin price may fall]
Bitcoin’s (BTC) recent price action points to the possibility of a significant decline. The cryptocurrency has been undergoing a long period of consolidation, and this potential drop could reach 45%, posing a warning to the entire market.
On-chain analyst Ali Martinez said that when Bitcoin prices fall below the 200-day moving average, there is usually a sharp decline. Bitcoin is currently trading below its 200-day moving average of $64,000 for more than a month, which could signal a drop to around $31,500, a roughly 45% drop.
As of now, Bitcoin is trading at $58,333, up 0.66% in the past 24 hours, but down 4.66% in the past 30 days. Additionally, trading volume fell 19.3% to $29.6 billion, indicating weakening investor confidence and a wait-and-see sentiment. Bitcoin, along with other major cryptocurrencies such as Ethereum, is still in a period of consolidation that is likely to continue in the short term.
