Crypto Analysts Flash Warning: Bitcoin To Faces 55% Crash Amidst Market Turbulence

The post Crypto Analysts Flash Warning: Bitcoin To Faces 55% Crash Amidst Market Turbulence appeared first on Coinpedia Fintech News

Bitcoin hit a new record of $69,324 on March 5 but later price crashed by 10.2% to $59,323. Due to the sudden drop, the broader cryptocurrency market experienced a loss of over $150 billion in the last 24 hours.

Meanwhile, some analysts see this correction as a healthy move, believing Bitcoin’s dip was necessary. They see these downward movements as attractive buying opportunities. On the flip side, some analysts predict Bitcoin price to drop more than 55%

Bitcoin Crash Alert Upto 55%

In a recent analysis, esteemed crypto analyst Ali Martinez has sounded the alarm for Bitcoin investors. Martinez, known for his insightful technical analyses, points to cautionary signs flashing on Bitcoin’s daily chart.

The TD Sequential indicator, known for its accuracy, recently flashed a sell signal. This indicator previously signaled a buy in January, leading to a 34% surge, and a sell in mid-February, resulting in a 4.44% downturn.

Adding to the concern is the Bitcoin MVRV indicator, currently at 19.57%. Referring to historical patterns, Martinez highlights that whenever this indicator crossed the 18% threshold since February 2021, Bitcoin prices witnessed significant plunges ranging from 24% to 55%.

Martinez’s early warnings provide valuable insights for navigating volatile crypto markets.

A Much-Needed Correction

John Bollinger another technical analyst, has sounded a note of caution amidst Bitcoin’s recent price surge.

Expressing concern over the extent of profit-taking at new highs, Bollinger questions whether it’s a result of leverage, weak hands, or another factor influencing the market.

Rekt Capital, a well-known crypto trader, anticipates a notable Bitcoin pullback. He highlights that this retracement is not the end of the bull market; instead, it marks a temporary setback before Bitcoin resumes its upward trajectory.

Movement of BUY THE DIP

As per the Coinglass data, poorly positioned traders faced losses as Bitcoin surged past $69,000, resulting in over $1.05 billion in liquidated leveraged positions. Long liquidations contributed $846 million, with BTC’s long liquidations totaling $309.33 million. 

Following the price dip, analysts view it as a strategic opportunity to buy before Bitcoin’s potential new high, especially with the imminent halving. 

Meanwhile, his sentiment has driven buy-the-dip strategies to peak levels, historically presenting an opportune moment for capitalizing on buying. As of now, Bitcoin trades at $66,204, reflecting a 1.3% drop in the last 24 hours.