As the pressure on the cryptocurrency market increased in early October, the price of Bitcoin fell by 7.72% to $60,000. Except for the major cryptocurrency, other cryptocurrencies also lost about $200 billion in value. Now, analysts, especially experts like Ali Martinez, claim that Bitcoin could continue to decline and fall to $52,000.

Parallel Channel Threat Reduced in Bitcoin

A descending parallel channel is a chart that moves between two downward trend lines. Such channels usually indicate that the asset is trading in a narrow range and the downtrend is dominant. Traders often test the lower trend line while ensuring that the price remains below the upper trend line. If the price falls below the lower trend line, this usually signals a larger decline.

As Bitcoin failed to break above the upper limit of this channel at $66,000, it reversed its downward direction once again. The current price action shows that Bitcoin is moving within this channel and retreating to the lower limit. In particular, the $52,000 level is important as it has been an important support point for Bitcoin in the past.

$52,000 is an important threshold

If Bitcoin fails to sustain above $52,000, there could be a fresh wave of selling in the market. Therefore, market participants are closely monitoring the situation to minimize risks. If there is a drop below $52,000, BTC could choose $49,000 as the first stop.