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Crypto analyst Ali Martinez has suggested that the Bitcoin crash may not be over yet, despite the relief to $61,000. The analyst emphasized that the $60,365 price level is important to avoid a possible crash as low as $57,000.
Bitcoin must remain above this price level to avoid a crash
Martinez stated in an X-post that $60,365 is an important price level to watch for Bitcoin. He claimed that a break below that could see the flagship crypto fall to $57,420. However, if the price stays above this level, the analyst noted that a recovery to $63,300 is on the table. Therefore, Bitcoin’s trajectory depends on the crucial support of $60,000.
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In another analysis, Martinez suggested that Bitcoin would likely experience more downside pressure than a recovery in the short term. He revealed that since May, every correction of the ratio between market value and realized value (MVRV). from the 90-day average has led to a significant Bitcoin correction.
In line with this, the analyst noted that the latest rejection has already caused a 10% drop, suggesting that Bitcoin could experience further price drops. Analyst Justin Bennett also believes Bitcoin is likely to fall lower and predicts it could fall to $57,000. He added that it would be nice to take out the $63,200 short positions.
In the meantime he referred to the US Jobs Reportwhich will be published on October 4. The analyst expects significant volatility amid this inflation data. A weak jobs report could lead to a Bitcoin crash similar to what happened in August, which saw the flagship crypto fall to $54,000. The inflation data is also important because it would provide insight into whether the market can expect this further interest rate cuts from the Federal Reserve this year.
Veteran trader Peter Brandt also appears to be bearish on Bitcoin at the moment. He highlighted a ‘Three blind mice’ pattern that formed on the BTC chart, indicating that the crypto will see a bearish reversal after the October uptrend.
Why a Price Crash Could Be Good
The on-chain analytics platform Santiment suggested that a Bitcoin price crash could be desperately needed for the flagship crypto to soar higher. The platform noted that the public has cooled its excitement about crypto significantly since BTC retreated more than 9% its local highlight of $66,400 recorded on September 27.
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Santiment claimed that this is encouraging, given that markets typically move in the opposite direction of public expectations. As such, Bitcoin price could experience a surprise rally as market participants are more bearish on their trajectory.
Ali Martinez noted that Bitcoin was currently in the complacency phase and just needed to cool down before starting its next rally.
Featured image created with Dall.E, chart from Tradingview.com