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Crypto analyst Ali Martinez suggested that Bitcoin’s crash may not be over despite a rally to support $61,000. The analyst highlighted the $60,365 price level as important to avoid a potential crash less than $57,000.
Bitcoin Needs To Hold Above This Price Level To Avoid A Crash
Martinez said in the X post that $60,365 is an important price level to watch for Bitcoin. He said a break below this would cause the crypto flagship to fall to $57,420. However, if it holds above this level, the analyst noted that a rebound to $63,300 is on the table. Therefore, the trajectory of Bitcoin depends on key support at $60,000.
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In another analysis, Martinez suggested that Bitcoin is likely to suffer more from downward pressure in the short term than a rebound. He pointed out that since May, all the repairs of The ratio of market to real real value (MVRV). from its 90-day average led to a significant correction for Bitcoin.
In line with this, the analyst noted that the latest rejection has already caused a 10% drop, which shows that Bitcoin can suffer a significant drop in price. Analyst Justin Bennett and believes that Bitcoin is likely to decline and predicts that it may drop as low as $57,000. He added that relief from short positions of $63,200 would be good.
At that time, he talked about US jobs reportwhich is expected to be released on October 4. The analyst expects significant fluctuations in this inflation data. A weak job report could lead to a Bitcoin crash, similar to what happened in August, with the flagship crypto falling to $54,000. Inflation data is also important as it will provide information on what the market can expect further reductions in rate from the Federal Reserve this year.
Veteran trader Peter Brandt also seems bullish on Bitcoin at the moment. Featured ‘Three Blind Mice’ a pattern formed on the BTC chart, indicating that the crypto will witness a bearish reversal following its high in October.
Why Price Crashes Can Be Good
I Santiment’s on-chain analytics platform suggested that a fall in the price of Bitcoin may be necessary for the crypto-flagship to rise. The forum noted that the crowd has largely dampened their enthusiasm for crypto since BTC dropped 9% its high point for $66,400 recorded on September 27.
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Sentiment he said this is encouraging, considering that the markets often move in a different direction than the crowd expects. Therefore, the price of Bitcoin can enjoy an unexpected rally, as market participants are very strong in its direction.
Ali Martinez noted that Bitcoin was currently in a comfortable phase and just needed to cool its head before it started its next rally.
The featured image was created with Dall.E, a chart from Tradingview.com