Bitcoin prices plummeted early Tuesday morning, plunging 7% to a low of $65,547. This sharp decline comes after the cryptocurrency remained relatively stable over the past week, trading in the $70,000 range. According to data from Coinglass, around $395 million was liquidated in the cryptocurrency market due to the sudden crash.
Ethereum (ETH), the second-largest cryptocurrency by market capitalization, was also unaffected by the turmoil, dropping about 5% to $3,325. The decline has caused concern among investors, with analyst Ali Martinez warning that if Ether fails to sustain above $3,460, it could fall further below $2,850. ing.
The sudden volatility in the market has triggered a flurry of analysis and predictions by other players in the space. Experts from on-chain analytics firm Checkonchain opined on the current market situation, tweeting that the classic Bitcoin MVRV ratio is in a state of “overheating, but not yet.” This indicates that the average Bitcoin holder has a certain amount of unrealized profit multiple. This suggests that spending may increase, contributing to the growth of cryptocurrencies, albeit potentially pushing prices down.
“Some of these people are actually starting to take profits, and the $73,000 peak coincides exactly with the cycle high profit event of +352,000BTC. Although profit taking is a normal part of Bitcoin bulls, , it is an important element in establishing resistance “at the local top.'' experts said.
Julio Moreno, head of research at Cryptocurrency, also shared his insights, noting that Bitcoin’s upward momentum may be slowing, as evidenced by declining unrealized gains. However, experts emphasized that retail investors continue to actively buy falling Bitcoin prices, indicating strong demand for the cryptocurrency.
PlanB, a well-known Bitcoin analyst, also made a bold prediction in a YouTube video, predicting that Bitcoin could reach $100,000 this year and rise even higher in the coming years.
He advised investors to remain calm and refrain from panic selling during economic downturns. He noted that in previous bull markets, Bitcoin prices have risen exponentially, with occasional drops of 20% to 30% being part of the normal market cycle.
In particular, PlanB's stock-to-flow model, which tracks price movements relative to Bitcoin's scarcity, suggests that the average price level at the halving is $500,000.
Although short-term forecasts are inherently uncertain, analyst Martinez said, Warning As indicated by the sell signal of the TD Sequential indicator on the weekly chart, Bitcoin price may turn bearish in the next 1-4 weeks.
At the time of writing, Bitcoin was trading at $65,413, reflecting a decline of 6.32% in the past 24 hours, according to data from CoinMarketCap.
