The post Bitcoin May Slide To $31,500 If Market Downturn Persists, Analyst Warns appeared on BitcoinEthereumNews.com.

According to data from CoinMarketCap, Bitcoin (BTC) has experienced a rocky start to September declining by 8.16% in the past seven days. While the crypto market leader has shown some signs of recovery in the last day, there is still much uncertainty surrounding the BTC market. Commenting on Bitcoin’s potential next movement, popular analyst Ali Martinez has sounded out a stark warning to investors. Related Reading: Bitcoin Outperforms Ethereum By 44% Since The Merge — Here Are The Key Factors Bitcoin Must Avoid Fall To $51,600 – Analyst In an X post on Saturday, Ali Martinez issued a red market alert to traders, stating that whenever the price of Bitcoin plunged below its Realized Price-to-Liveliness Ratio, it often resulted in an extended price decline to the Realized Price.  The Realized Price-to-Liveliness Ratio is a market metric used to evaluate when BTC might be overvalued or undervalued. As the name implies, it is calculated by dividing the Realized Price i.e. the average price at which all Bitcoins In circulation were purchased, by Liveliness which is a measure of Bitcoin network activity.  According to Martinez, BTCs current Realized Price-to-Liveliness ratio stands at $51,600. Based on historical data, if the premier cryptocurrency falls below this level, it is likely to enter a period of massive selling pressure, plummeting to its present Realized Price which is valued at $31,500. So far, Bitcoin has had a turbulent period in September, sliding from $59,000 to below $54,000 in the first week of the month. However, the digital asset has produced little resilience since then, rising by over 2% to nearly hit $55,000 on Saturday.  While this minor price gain could initiate a bullish trajectory, investors should take note that September is traditionally a month with bearish returns for BTC, with an average loss of 4.78% in…

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Filed under: News - @ September 8, 2024 3:04 pm