A popular crypto analyst is issuing a warning about Bitcoin as BTC chops around the $90,000 range.
The trader Ali Martinez tells his 102,400 followers on the social media platform X that Bitcoin could plummet more than 24% from its current value if it loses one key support range.
The crypto analyst looks at the Unspent Transaction Output (UTXO) Realized Price Distribution (URPD) model to determine the key support levels. The UTXO keeps track of the number of existing coins that last moved within a given price range.
“The key support zone for Bitcoin now lies between $97,041 and $93,806. If this critical demand area doesn’t hold, we could see a sharp drop to $70,085, as there’s minimal support below.”
The analyst also says the cost basis distribution metric, which shows how much Bitcoin was purchased at different price levels, indicates people who bought BTC in the high $90,000 range are largely holding for now.
“The most significant support threshold for Bitcoin is between $99,000 and $97,000, based on the cost basis distribution. We really don’t want this level to become resistance…
The supply that was acquired between $97,000 and $99,000 hasn’t been sold yet. So what you got to expect is a decisive move that encourages all of those people who bought at this level to sell, which will then confirm that the support level is broken.”
Bitcoin is trading for $93,235 at time of writing, down 2% in the last 24 hours.
Next up, he says that Cardano (ADA) may be repeating a similar pattern from the 2020 cycle and may soon surge more than 597% from its current value.
“Cardano is following an eerily similar pattern to its previous cycle. Back in 2020, the first major correction after the bull rally began happened at the very same time as the correction we are experiencing today. $6 next!”
ADA is trading for $0.86 at time of writing, down 2.4% in the last 24 hours.
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inboxCheck Price Action
Follow us on X, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Mia Stendal
