The current cryptocurrency market landscape is not particularly promising, with many digital assets showing less than impressive price movements.
The leading cryptocurrency Bitcoin (BTC) is struggling to remain stable above the $26,000 mark, with indications that a sharper decline may be on the horizon.
Recently, Bitcoin fell below the 200-day simple moving average (SMA), a technical indicator used to identify general price trends.
The coin’s past behavior suggests there could be a pullback to its “realized price,” which is currently in the $20,350 range. Such insights come from cryptocurrency expert Ali Martinez, who released them on August 21st.
#Bitcoin | Every time $BTC has broken below the 200-day SMA for the past 10 years, it often drops to touch the realized price.
At the moment, the realized price is about $20,350. pic.twitter.com/SazzyyIhNW
— Ali (@ali_charts) August 20, 2023
Bitcoin Could Drop Below $20,000, Analyst Says
In previous assessments, Martinez had projected an even gloomier scenario for Bitcoin. According to him, the TD indicator showed a positive signal on the currency’s daily chart, but a confirmation will only strengthen if there is a consistent close above the 200-day SMA.
He warned that if Bitcoin breaks support between $25,200 and $24,800, we could see a drop to $20,000.
Ali’s prediction is based on similarities from other datasets. According to a report from CryptoQuant, the realized price of BTC holders may pose a risk to the asset in the near term.
The realized price is the average price at which all Bitcoin (BTC) last traded divided by the number of BTCs in circulation. The report compared the realized price of bitcoin over 1-6 months with the realized price over 1 year in the 2019 cycle and the current cycle.
However, as of that date, Bitcoin has managed to stay above this crucial support, trading at $26,061, reflecting a 0.19% decline for the day. The digital currency also shows a devaluation of 11.36% in the past week and 12.96% in the previous month, according to the most recent data.
Another analyst, who works under the pseudonym El_crypto_prof, brought additional perspective. He noted that Bitcoin’s recent massive sell-off has driven its relative strength index (RSI) to one of its lowest points in the past 20 months.
This may indicate an oversold situation. However, if we analyze historical patterns, there is a possibility of recovery between 28% and 60%
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
