Crypto Analyst Warns Of Volume Drop That Could Trigger 60% Bitcoin Price Crash To $49,000

Crypto analyst Melika Trader has warned of a quantity drop that might set off a 60% Bitcoin worth crash. The analyst offered an in-depth evaluation of what this worth crash may imply and if it will mark the tip of the bull run. 

How The Bitcoin Price Could Crash By 60% And Drop To $49,000

In a TradingView post, Melika Trader revealed how the Bitcoin worth may crash by 60% and drop to $49,000. The analyst famous that BTC is hanging simply above a critical support zone, an space he claimed many merchants acknowledge because the “most important support level” from a quantity perspective on Binance. 

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His accompanying chart confirmed that the Bitcoin worth may undergo a 60% drop as soon as it loses the previous pattern line at $75,000. The flagship crypto can also be at risk, having misplaced the vital help at round $83,000. This drop to $49,000 would deliver BTC again towards the high-volume vary close to $30,000. 

This supplies an ultra-bearish outlook for the Bitcoin worth. However, Melika Trader raised a twist, stating that solely 20% of merchants would possibly really lose. He famous that, in response to Binance’s quantity profile knowledge, the vast majority of shopping for exercise and place accumulation occurred beneath $35,000. 

The analyst additional talked about that almost all long-term holders and good cash entered through the 2022/2023 accumulation vary. The Volume Profile Visible Range (VPVR) can also be stated to point out important help beneath the present Bitcoin worth, with minimal buying and selling quantity at greater ranges. Melika Trader remarked that solely a minority of merchants purchased BTC throughout its late-stage bull run above $70,000. 

Meanwhile, the vast majority of buyers are nonetheless in revenue or break-even, even when the Bitcoin worth retraces again to its base. As such, most merchants are protected, as BTC dangers a drop to as little as $49,000. 

Why BTC’s Bull Market Is Over

CryptoQuant’s CEO, Ki Young Ju, not too long ago asserted that BTC’s bull market is over amid the Bitcoin worth decline. He alluded to the ‘Realized Cap’ metric to elucidate his confidence that the bull run is over. The CryptoQuant CEO famous that if Realized Cap is rising however Market Cap is stagnant or falling, it means capital is flowing in however costs aren’t rising. 

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Ki Young Ju famous that this can be a clear bearish sign, and that is what’s presently occurring. Capital is getting into the market proper now, however the Bitcoin worth isn’t responding, which he claims is typical of a bear market. The CryptoQuant CEO defined that even large purchases like MicroStrategy’s aren’t pushing costs up as a result of there may be an excessive amount of promote strain in the meanwhile. 

Ki Young Ju once more affirmed that present knowledge factors to the Bitcoin worth being in a bear market. He famous that promote strain may ease anytime however warned that traditionally, actual reversals take at the very least six months. As such, the CryptoQuant CEO believes a short-term rally appears unlikely. 

At the time of writing, the Bitcoin worth is buying and selling at round $77,000, down over 7% within the final 24 hours, in response to data from CoinMarketCap.

Featured picture from Unsplash, chart from Tradingview.com