Trader issues Bitcoin alert, warns BTC could drop sharply if key support zone breaks down - that's his goal
Brothers, 1,000 fans start live broadcast, analyze market trends online
With Bitcoin (BTC) price fluctuating around $90,000, cryptocurrency analyst Ali Martinez has issued a warning about Bitcoin. He told his 102,400 followers on social media platform X that if Bitcoin loses a key support level, the price could plummet by more than 24%.
Martinez analyzed the Unspent Transaction Output (UTXO) Realized Price Distribution (URPD) model, which tracks the number of Bitcoins last moved in a specific price range, to determine key support levels. He noted that Bitcoin's current key support range is between $97,041 and $93,806. If this support area fails to hold, the price could fall sharply to $70,085 as there is little support below.
In addition, Martinez mentioned that the cost basis distribution indicator shows that most investors who bought Bitcoin around $90,000 are still holding their coins. Therefore, if Bitcoin falls below the key support range, it may prompt these investors to sell, thereby confirming that the support level has been broken.
As of writing, Bitcoin is trading at $93,235, down 2% in the past 24 hours.
Speaking of other crypto assets, Martinez also predicted that Cardano (ADA) may repeat a similar pattern of the 2020 cycle and may soon soar by more than 597% from the current price. He believes that Cardano is following a similar pattern to the beginning of 2020 and expects a sharp rise in the future after the bull market adjustment, with a target price of $6.