Popular crypto analyst Ali Martinez, Bitcoin $96,653.7He stated that it is at risk of a sudden collapse if it loses critical support levels. In a statement to his 104,000 followers, he warned that Bitcoin’s current value could fall by approximately 27%.
Bitcoin’s Support Level and UTXO Pattern
Martinez stated that he used the Unused Transaction Output (UTXO) Realized Price Distribution (URPD) model to analyze Bitcoin’s price movements. This model shows the number of coins that were last traded in a certain price range.
According to the UTXO model, if Bitcoin’s price falls below $93,806, there is a risk of a drop to $70,085.
Investors’ Preparation for the Bear Scenario
The analyst noted that some investors were preparing for a potential bear market. He said that particularly large amounts of Bitcoin were sent to exchanges. Last week, 33,000 Bitcoins, or approximately $3.23 billion worth of digital assets, were transferred to exchanges. Additionally, a Bitcoin profit worth $7.17 billion was realized on December 23.
Martinez also emphasized that the number of traders betting on the rise of Bitcoin on Binance dropped by 13%. The open Bitcoin long position ratio on Binance has decreased from 66.73% to 53.60% in recent days. This decline shows that the bear spirit is getting stronger.
Stating that Bitcoin’s decline may continue if its support levels are broken, Martinez stated that the $ 100,000 level should hold as support. According to the IOMAP metric, it will be important for Bitcoin to regain support at this level to ensure stability in the market.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
