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Bitcoin is experiencing a price crash. Losses dominate the crypto market. Only a few cryptocurrencies are currently managing to withstand this trend. Crypto analyst Ali Martinez explains why BTC is currently experiencing a significant downturn, why he expects new price gains in the near future, and what price level investors need to pay attention to now.
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Bitcoin Price Crash: this is why BTC and Co. Are Falling
Over the last few days, Bitcoin has experienced a price crash. Just last Thursday, BTC set a new all-time high of over $124,000 – now the largest cryptocurrency is noticeably declining.
Since the Bitcoin all-time high, which according to CoinMarketCap is exactly $124,457, the BTC price has fallen by around nine percent to just $113,850. The cryptocurrency has lost 1.40 percent of its market value since yesterday alone.
- Bitcoin
(BTC) - Price $113,924.00
- Market Cap
$2.27 T
While Bitcoin’s market value is shrinking, a large proportion of the remaining cryptocurrencies are also falling. Only a few coins can be seen on the crypto heat map that are currently writing green numbers.
The entire crypto market is down a considerable 2.10 percent – and that’s in the daily trend. The total value of the market is shrinking to 3.82 trillion US dollars.
According to the assessment of well-known price analyst Ali Martinez, the current crypto crash was not triggered by a specific event. Instead, it is a natural correction following recent highs.
“The crypto market is currently showing weakness as capital inflows have fallen by almost 24 percent in the last three weeks – from around 86 billion to 66 billion US dollars [per day]”, Martinez explains
“This decline in liquidity is reflected in all major assets, especially Bitcoin and Ethereum, both of which are undergoing a correction phase after recent highs.”
The crypto market is therefore likely to consolidate before continuing the bull market – at least if Martinez is right with his forecast.
This Value is Now Crucial for Bitcoin Investors
Martinez does not see any reason to panic so far – quite the opposite. The price analyst believes that Bitcoin could soon start its next price rally. For this to succeed, support at $112,000 must hold.
“Bitcoin has retreated significantly from its all-time high of $124,590 and is now trading around $113,500. The price development suggests that the level of $112,800 to $112,000 continues to be the most important short-term support”, the analyst explained a few hours ago.
The area around $112,000 has already withstood tests in the past. If this support proves itself again, a bullish reaction is to be expected on the market.
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“Another test could trigger an opportunity for a bullish reaction on the four-hour Relative Strength Index”, writes Martinez.
“Should such signals occur, Bitcoin could experience a recovery – with initial targets at $115,000 and $118,000.” This would be followed by “a retest of the all-time high at $124,600.”
