According to data from CoinMarketCapBitcoin (BTC) has had a rocky start to September, dropping 8.16% over the past seven days. While the crypto market leader has shown some signs of recovery over the past day, there is still a lot of uncertainty surrounding the BTC market. Popular analyst Ali Martinez has warned investors about Bitcoin’s possible next move.
Related reading: Bitcoin Outperforms Ethereum 44% Since Merger – Here Are the Key Factors
Bitcoin Must Avoid Drop to $51,600 – Analyst
In a X-post on SaturdayAli Martinez issued a red market alert to traders, stating that when Bitcoin’s price fell below the realized price-to-viability ratio, it often resulted in a prolonged price decline relative to the realized price.
The realized price-to-viability ratio is a market metric used to evaluate when BTC may be overvalued or undervalued. As the name suggests, it is calculated by dividing the realized price, that is, the average price at which all Bitcoins in circulation were purchased, by the liveliness, which is a measure of Bitcoin network activity.
According to Martinez, BTC’s current Realized Price-to-Liveliness ratio stands at $51,600. Based on historical data, if the leading cryptocurrency drops below this level, it is likely to enter a period of massive selling pressure, plummeting to its current Realized Price valued at $31,500.
Bitcoin has had a turbulent September so far, falling from $59,000 to below $54,000 in the first week of the month. However, the digital asset has shown little resilience since then, rising more than 2% to almost $55,000 on Saturday. While this small price increase could herald a bullish trajectory, investors should note that September is traditionally a month of negative returns for BTC, with an average loss of 4.78% over the past 11 years.
Bitcoin Still Far From ‘Seller Exhaustion’ Levels, Price Reversal Could Still Be Delayed
In other news, another crypto analyst, Rekt Capital, mentioned that Bitcoin’s sales volume is currently far from “seller exhaustion” levels amid the recent price drop and increased volatility levels. Thus, the digital asset is likely to experience more price losses before it potentially “kickstarts” a market recovery.
At the time of writing, BTC is trading at $54,009, reflecting a gain of 0.45% over the past 24 hours. Meanwhile, the token’s daily trading volume has dropped by 60.39%, and it is currently valued at $19.41 billion. It is worth noting that Bitcoin is currently in a strong support zone, a rebound from which the asset’s price could potentially surge as high as $60,000, suggesting a potential upside of 11% on its current price.
Main image of StormGain, chart from Tradingview