Analyst Warns Bitcoin May Plunge Below $60,000 If Current Trends Hold

A prominent cryptocurrency analyst has raised concerns about the future of Bitcoin (CRYPTO: BTC), indicating a potential decline in its price if current trading patterns persist. On Sunday, Ali Martinez shared insights via an X post, suggesting that Bitcoin might fall significantly if it remains below the Short-Term Holder Realized Price of $111,937.

According to Martinez, the likelihood of Bitcoin dropping towards the Realized Price of $56,145 or even the Long-Term Holder Realized Price of $37,815 increases if it does not break above the aforementioned threshold. The Short-Term Holder Realized Price reflects the average cost at which investors who have held their coins for less than 155 days acquired them, as detailed by Glassnode. In contrast, the Long-Term Holder Realized Price indicates the average cost of Bitcoin held for over 155 days. These metrics often serve as critical support and resistance levels for Bitcoin’s price.

Market Analysis and Future Outlook

In a related assessment, Coinbase Institutional opined that the recent sell-off in October may represent a necessary “reset” for the cryptocurrency market. The organization stated, “Excess leverage is flushed, fundamentals remain intact, and institutional players are quietly rotating back in.” Coinbase Institutional anticipates that this period could be a “base-building phase” ahead of the next upward movement in Bitcoin’s price rather than the peak of the current cycle. They project a “gradual increase” in Bitcoin’s dominance, estimating its price to range between $90,000 and $160,000 in the next three to six months.

In the short term, Bitcoin and other major cryptocurrencies experienced a rally overnight on Sunday, driven by optimism surrounding the potential end of the federal shutdown in the United States. As a result, Bitcoin reclaimed a value of $106,000, recovering losses incurred earlier in the week. Cathie Wood, CEO of ARK Invest, remains optimistic about Bitcoin’s future, reaffirming her ambitious target of $1 million for the cryptocurrency. Wood attributes her bullish outlook to the growth of stablecoins, which have recently surpassed a total market value of $300 billion.

At the time of writing, Bitcoin was trading at $106,214.40, reflecting a 4.30% increase in the past 24 hours, according to data from Benzinga Pro.

As the market continues to evolve, analysts and investors alike will be closely monitoring Bitcoin’s movements, particularly in relation to its Short-Term and Long-Term Holder Realized Prices. The interplay between market fundamentals and trading patterns will likely play a crucial role in determining the cryptocurrency’s trajectory in the coming months.